Question

Credit Card StatementPrevious Balance$ 150.00Finance Charge$ 10.00New PurchasesCalculate the newbalance on thisaccount after thesecharges andpayments areapplied.$ 90.00Payments$(220.00)$ (20.00)CreditsA. $490.00C. $310.00B. $10.00D. $190.00

Answer 1

B. $10.00

Step-by-step explanation:

We let:

Previous Balance=$ 150.00

Finance Charge=$ 10.00

New Purchases=$ 90.00

Payments= $(220.00) + $ (20.00)

Credits=$0

To find the new balance on this account, we use the formula:

New Balance=Previous Balance + Finance Charge + New Purchases - (Payments + Credits)

So,

New Balance=Previous Balance + Finance Charge + New Purchases - (Payments + Credits)

= 150.00+ 10.00+ 90.00 - (220.00+20.00+0)

Simplify

=250-240

Calculate

New Balance= $10.00

Therefore, the new balance on this account is $10.00.