Answer:
Option 3 - $2518.47
Step-by-step explanation:
Given : Gavin’s unpaid credit card balance is $2103.23. His APR is 14.4%.
To find : What is his new balance if he made one new transaction for $390?
Solution :
We have given,
Unpaid balance = $2103.23
APR= 14.4%=0.144
Now, the formula to find finance charge
Finance charge = Finance rate × Unpaid balance
Finance charge = [tex]\frac{0.144}{12} \times 2103.23[/tex]
Finance charge = $25.238
New balance = Unpaid balance + finance charge + new transaction
New balance = $2103.23 +$25.238+ $390
New balance =$2518.468
Therefore, Option 3 is correct.
The new balance is $2518.47.
