Question

If Harry's new balance was $123.40, what would be his total available credit?

A. $500.00

B. $367.60

C. $376.60

D. $123.40

I'm not sure how to find total credit available but I tried it two different ways and got two answers so I'm between B and C. If you just subtract the new balance from the total credit you get C but if you subtract both the new balance and payments you get B. Please help

Answer 1

I think it would be D. $123.40 because I think credit is the amount that you are allowed to spend but can pay off later, like a credit card, basically barrowing money. If harry's balance is $123.40 that is the amount left he can use out of the original amount which was $500.  Im not totally sure but if thats wrong, im sorry. I hope this helps some way :^)

Answer 2

You need to subtract the new balance from the credit line, which is option C