Question

Calculate the new balance using the previous balance method, Previous balance = $102.35 Finance charge = $1.24 New purchases = $15.73 Payments/credits = $12.00 New balance = $______

Answer 1

The correct answer is 107.32

With the previous balance method, you add the finance charge and new purchases then subtract payments/credits.

Previous balance=102.35

Add the finance charge,

102.35+1.24=103.59

next, add new purchases.

103.59+15.73= 119.32

Then subtract payments/credits

119.32-12= 107.32

Answer 2

new balance = $107.29

Step-by-step explanation:

The formula to calculate the new balance is:

new balance = previous balance + finance charge + new purchases

- (payments + credits)

We are given that:

previous balance = $102.35

financial charge = $1.24

new purchases = $15.73

payments + credits = $12

Substitute with the givens in the above formula to get the new balance as follows:

new balance = 102.32 + 1.24 + 15.73 - 12

new balance = $107.29

Hope this helps :)