Answer: $762.70.
Step-by-step explanation: Why because To find Debra's new balance, we need to consider the previous balance, new purchases, minimum payment, credit received, and finance charges.
1. Previous Balance: $426.07
2. New Purchases: $296.25
3. Minimum Payment: $67.50
4. Credit Received: $33.40
5. Periodic Rate: 6.50%
First, we need to calculate the finance charges. Debra's bank uses the unpaid balance method, which means finance charges are calculated on the unpaid balance after subtracting the minimum payment and any credits received.
Unpaid Balance = Previous Balance - Minimum Payment + New Purchases - Credit Received
Unpaid Balance = $426.07 - $67.50 + $296.25 - $33.40
Next, we calculate the finance charges using the periodic rate and the unpaid balance:
Finance Charges = Unpaid Balance * (Periodic Rate/100)
Finance Charges = (Unpaid Balance) * (6.50/100)
Now, we can calculate the new balance by adding the previous balance, new purchases, finance charges, and any other fees or charges:
New Balance = Previous Balance + New Purchases + Finance Charges
New Balance = $426.07 + $296.25 + Finance Charges
Finally, substitute the value of Finance Charges into the equation and calculate the new balance:
New Balance = $426.07 + $296.25 + (Unpaid Balance) * (6.50/100)
Substituting the value of Unpaid Balance:
New Balance = $426.07 + $296.25 + [($426.07 - $67.50 + $296.25 - $33.40) * (6.50/100)]
Performing the calculations, we find:
New Balance ≈ $426.07 + $296.25 + ($621.42 * 0.065)
New Balance ≈ $426.07 + $296.25 + $40.38
New Balance ≈ $762.70
Therefore, Debra's new balance is approximately $762.70.