Lionel's credit card has an APR of 28.99% and requires a monthly payment of at least 7% of the balance.  Calculate Lionel's new balance if he had a carryover balance of $2,967.90 at the beginning of the month.  
 

To calculate Lionel's new balance, we need to follow these steps:

1. **Calculate the monthly interest rate:**  
   The APR (Annual Percentage Rate) is 28.99%, so the monthly interest rate is:
   \[
   \text{Monthly Interest Rate} = \frac{28.99\%}{12} = \frac{28.99}{12} \approx 2.4158\%
   \]
   This is the percentage of interest applied each month to the carryover balance.

2. **Calculate the interest charged on the carryover balance:**
   Lionel has a carryover balance of \$2,967.90, so the interest charged this month is:
   \[
   \text{Interest} = 2.4158\% \times 2,967.90 = \frac{2.4158}{100} \times 2,967.90 \approx 71.70
   \]

3. **Calculate the new balance after interest is added:**
   \[
   \text{New Balance} = \text{Carryover Balance} + \text{Interest} = 2,967.90 + 71.70 = 3,039.60
   \]

Therefore, Lionel's new balance after the interest is added is **\$3,039.60**.

Would you like details on how credit card balances grow with interest or any clarifications?

Here are 5 follow-up questions:
1. How does APR affect the amount of interest paid over time?
2. How would the balance change if Lionel made a payment?
3. What if the interest rate was compounded daily instead of monthly?
4. How would paying off a higher percentage of the balance reduce interest charges?
5. What other fees could increase a credit card balance?

**Tip:** Always aim to pay more than the minimum payment on credit cards to reduce interest and clear debt faster.

Lionel's credit card has an APR of 28.99% and requires a monthly payment of at least 7% of the balance. Calculate Lionel's new balance if he had a carryover balance of $2,967.90 at the beginning of the month.

Learn how to calculate Lionel's new credit card balance with an APR of 28.99%. This example covers percentage-based interest calculation and applies the formula to determine the new balance after interest is added to a carryover balance of $2,967.90. Suitable for students in Grades 9-12.

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