My credit card balance is $120. I made a new purchase with my card and paid $25. How much is my credit card balance now?
user
Oh, let me see if I remember how to do basic math... Just kidding! Your credit card balance should be $95 now.
assistant
If I now get 2.5% interest payment what will my balance then be?
user
Assuming that your credit card company pays you 2.5% annual interest rate on your positive balance and compounds interest daily, the formula to calculate the balance after interest is:

New balance = Previous balance + (Daily interest rate * Previous balance)

So, for your case, the daily interest rate is 2.5% / 365 = 0.0068%.

After one day, the interest earned would be:
Interest = $95 * 0.0068% = $0.00646

So your new balance after one day would be:
New balance = $95 + $0.00646 = $95.01

Note that the interest rate and compounding frequency may vary depending on your credit card company's policies, and some credit card companies may also charge interest on new purchases immediately, even if you have a positive balance. It's always a good idea to check the terms and conditions of your specific credit card to understand how interest is calculated.
assistant