Question

Previous BalanceCredit Card StatementCalculate the new$310.00balance on thisFinance Charge $10.00 account after theseNew Purchases $80.00charges andPayments$(200.00)payments are$0.00appliedCreditsA. -$20.00B. $440.00C. $600.00D. $200.00

Answer 1

The formula for the new balnce after the charges and payments are applied is given below,

New balance= Previous balance + Finance charge + New purchases - ( Payments + Credits).

Given data

`\begin{gathered} \text{Previous balance=\$310}.00 \\ F\text{inance charge=\$10}.00 \\ \text{New purchases=\$80}.00 \\ \text{Payments}=\text{ \$200.00} \\ \text{Credits}=\text{ \$0.00} \end{gathered}`

Therefore,

`\text{New balance=\$(}310.00+10.00+80.00)-\text{ \$(200.00+0.00)}`
`\begin{gathered} \text{New balance=\$(400.00)-\$(200.00)} \\ \text{New balance=\$(400.00-200.00)} \\ \text{New balance=\$200.00} \end{gathered}`

Hence, the New balance on the credit card statement is $200.00.

The correct option is Option D.