Question

Don recently received his first credit card, a mastercard with a credit line of $500. in the first month he had it, he ran up charges of $475. how much of that must he pay if he wants to charge an airline ticket which costs $200 on his card without going over his credit limit?

Answer 1

He has to pay at least $175.

Step-by-step explanation:

As he wants to charge $200 airline ticket cost to his credit card without exceeding the credit line of $500, his available limit at the time the airline ticket is charged should be $200 or above; or the outstanding charge should be $300 or below ( that is, $500 - $200).

As his outstanding charge is $475, he needs to pay at least $175 ( that is, $475 - $300) in order to bring his available limit from $25 ( that is $500 - $475) to at least $200 so that the airline ticket cost can be charge to his credit card without going beyond the given limit of $500.