# Alexander has a previous balance of $982 on a credit card with a 19.2% APR compounded monthly. If he made a payment of$73 this month, what is the new balance on his credit card?

New balance is $924.71 to 2 decimal places #### Explanation: APR is 19.2% $\to \frac{19.2}{100}$Split over 12 months this is $\frac{19.2}{12 \times 100} = \frac{19.2}{1200}$per month Note that we are considering only 1 payment cycle (the current one) Using P(1+x)^("months count") ->$982(1+19.2/1200)^1-$73=$924.712
New balance is \$924.71 to 2 decimal places