Respuesta :
The APR is applied to the balance that is present on the card over a
specified period.
Responses:
First question:
- D. $5655.71
Second question:
- C. $3886.74
Third question:
- B. $297
Fourth question:
- C. $659.83
How is the balance on the credit card and factors of a loan calculated?
Formula:
- New balance = Previous balance - Payments + Purchases + Finance charge
Where;
- [tex]Finance \ charge = \mathbf{\dfrac{APR}{12} }\times \left(Previous \ balance - Payment + Purchases \right)[/tex]
First question:
New transaction can be excluded from the calculation of the APR
[tex]Finance \ charge = \dfrac{0.132}{12} \times \left(\$5392.39 \right ) = \mathbf{ \$59.31629}[/tex]
New balance = $5392.39 + $204 + $59.31629 = $5655.71
- Correct option is D: $5655.71
Second question:
[tex]Finance \ charge = \dfrac{APR}{12} \times \left(Previous \ balance - Payment \right)[/tex]
Which gives;
[tex]Finance \ charge = \dfrac{0.192}{12} \times \left(\$3694.23 - \$100 \right) = \mathbf{ \$57.50768}[/tex]
New balance = $3694.23 - $100 + $235 + $57.50768 ≈ $3886.74
- The correct option is C: $3886.74
Third question:
[tex]Monthly \ payment = \mathbf{\dfrac{Total \ payment}{Number \ of \ payment}}[/tex]
Which gives;
[tex]Monthly \ payment = \dfrac{\$14,256 }{48} = \mathbf{\$297}[/tex]
- The correct option is B. $297
Fourth question:
Given that the rate is for a simple interest rate, we have;
[tex]Monthly \ payment = \mathbf{ \dfrac{Amount \ borrowed \times \left(1 + APR\right)}{Number \ of \ periods \right)}}[/tex]
Which gives;
[tex]Monthly \ payment = \dfrac{ \$7400 \times \left(1 + 0.07\right)}{12 } \approx \mathbf{\$659.83}[/tex]
- The correct option is C. $659.83
Learn more about loan calculations here:
https://brainly.com/question/15948713
