Question

The ending balance on Scotty's credit card last month was 853.00. He only paid 45.00, so a finance charge of 11.00 was added to his account. Both his payment and the fee were posted on September 10. His billing period is September 10 - October 9. On September 20, he charged 50.00. On September 27, he charged 78.00. His interest rate is 29

1) 866.00
2) 877.00
3) 891.00
4) 902.00

Answer 1

To calculate the ending balance on Scotty's credit card, deduct the payment and add the finance charge. Then, add the charges made during the billing period. Finally, calculate the interest on the balance and add it to the balance.

Step-by-step explanation:

To calculate the ending balance on Scotty's credit card, we need to consider all the transactions that occurred during the billing period.

Starting with the ending balance from last month ($853.00), we deduct the payment made by Scotty ($45.00) and add the finance charge ($11.00). This gives us a balance of $819.00.

Next, we add the charges made by Scotty on September 20 ($50.00) and September 27 ($78.00). This brings the balance to $947.00.

Finally, we calculate the interest on the balance using the interest rate of 29%. So, the interest charged is $947.00 * 0.29 = $274.63.

Adding the interest to the balance, we get $947.00 + $274.63 = $1221.63.

Therefore, the correct answer is option 3) $891.00.