Question

Hank purchased a new grill for $349 on his credit card. He had a previous balance of $225.91. A finance charge of $8.62 was assessed. What is his new balance?

Answer 1

if his starting balance is the $225.91

then his balance would be

-131.71

Answer 2

$583.53

Step-by-step explanation:

The balance on a credit card is determined by subtracting from the previous balance any payment made and adding purchases or finance charges. So, according to this, as Hank made a purchase and a finance charge was assessed, we have to add this to the previous balance to find the new one:

$225.91+$349+$8.62= $583.53

Hank's new balance is $583.53.