Question

Murray got a new credit card with an APR of 22% a month ago, and he just got his first credit card statement. He charged a watch for $47, a belt buckle for $19, and a pair of socks for $6. If his credit card charges interest on the previous monthly balance, how much should Murray pay now so that he doesn't have any interest charged to him on next month's statement?

Answer 1

The answer would be $72 because 47+19+6 = 72, therefore he should pay $72 to bring his balance down to $0, that way he does not have to pay interest

Answer 2

Answer:

$72

Step-by-step explanation:

This is a new credit card so the previous month balance is $0 and there is no interest charged from a previous balance.

This month, Murray has a balance of $47 + $19 + $6 = $72.

And if he does not pay this balance in full this month, then the credit card will charge him interest on the unpaid portion of this balance that carries over to next month. But if he pays the full balance,then there will be no balance left and he will not have to pay any interest.

Hence, as there is no previous balance to be paid he will only pay for this month's expenses which is $72