You make a purchase of $600 on a new credit card with a yearly interest rate of 12%. You make a large payment for first month of $200. What is the credit cards balance before you make the payment

Answer 1

To calculate the credit card balance before making the $200 payment, we first have to determine the interest accrued on the remaining balance.

First, calculate the total interest accrued in one month:
Interest = (Balance x Monthly interest rate) / 100
= ($600 x 12) / 12
= $72

Next, subtract the $200 payment from the balance:
Balance = $600 - $200
Balance = $400

Finally, add the interest accrued in one month to the remaining balance to find the credit card's balance before the $200 payment:
Credit card balance before payment = $400 + $72
Credit card balance before payment = $472

Therefore, the credit card's balance before making the $200 payment would be $472.