Question

Calculate the new balance using the previous balance method.

Previous balance = $34.80

Finance charge = $0.75

New purchases = $83.21

Payments/credits = $5.50

New balance = $______

A.) 111.76

B.) 113.26

C.) 124.26

D.) -55.46

Answer 1

B.) 113.26

Explanation:

Using the previous balance and the additional finance charge on the balance carried over, you can add the new purchase and subtract the credits to arrive at your new balance:

Previous balance = $34.80

Finance charge = $0.75

New purchases = $83.21

Total debt: $118.76

Payment: - $5.50

New Balance: $113.26