Question

You have a balance of $500 on a credit card with a monthly interest rate of 2%. You make a payment of $15 when you receive your credit card bill. What is the new balance after the payment?(1 point)
Responses

$505
$505

$525
$525

$495
$495

$475

Answer 1

To calculate the new balance after the payment, you must first determine the interest charged on the current balance, then subtract the payment.

1. **Calculate the Interest:**
- Current Balance: $500
- Monthly Interest Rate: 2%
- Interest = Current Balance × Monthly Interest Rate
- Interest = $500 × 0.02 = $10

2. **Calculate the New Balance after Interest:**
- New Balance = Current Balance + Interest
- New Balance = $500 + $10 = $510

3. **Subtract the Payment:**
- Payment: $15
- New Balance = New Balance - Payment
- New Balance = $510 - $15 = $495

Thus, the new balance after the payment is **$495**.