Question

Credit Card StatementCalculate the newPrevious Balance $125.00 balance on thisFinance Charge $16.00 account after theseNew Purchases$120.00 charges andPayments $(150.00)payments areCredits$0.00 applied.A $161.00B. $111.00C. $171.00D. $411.00

Answer 1

This is a credit balance problem. Listed the previous balance, finance charge, new purchases, payments, and credits, the new balance can be calculated by summing up the previous balance, finance charge, and new purchases then subtracted to the sum of payments and credits. Applying this calculation, the new balance for the credit card is

`\begin{gathered} Balance=\$125.00+\$16.00+\$120.00-(\$150.00-\$0.00) \\ \text{Balance}=\$111.00 \end{gathered}`

Answer: B. $111.00