Question

I have a past due balance of $87.50 and my new charges are $75.00. I was also charged a late fee of 15% of my past due balance. What is my new total?" Employee: "Your new total is

Answer 1

$175.625

Explanation:

Let us figure out late fees on the given past due by finding 15% of 87.50.

`\text{Late fee}=(15)/(100)* 87.50`

`\text{Late fee}=0.15* 87.50`

`\text{Late fee}=13.125`

Our new total will be the sum of past due balance, late fee and new charges .

`\text{New balance}=\text{Past due balance + Late fee + New charges}`

Let us substitute our given values in above equation to find our new balance.

`\text{New balance}=87.50+13.125+75`

`\text{New balance}=175.625`

Therefore, the new balance will be $175.625.

Answer 2

Past due balance = $87.50
Late fee = 15% of $87.50 = 0.15*87.50 = $13.125
New charges = $75.00

New total = 87.50 + 13.125 + 75 = $175.625

Answer: The new total is $175.63