Question

Pavi has a credit line of $8,000 on his credit card. Review the summary of his credit card statement. How much credit does Pavi currently have available on this card? Summary Previous Balance Payments/Credits New Purchases Finance Charge New Balance $2,500.00 $1,500.00 $3,000.00 $7.50 $4,007.50

Answer 1

$3,992.50

Explanation:

According to the problem, computation of the given data are as follows,

Credit line on credit card = $8,000

Balance Payment = $2,500

Credit = $1,500

New Purchases = $3,000

Finance Charges = $7.50

New Balance = $4,007.50

So we can calculate the available credit on card by using following formula,

Available credit on card = Credit line on credit card -New balance

By putting the value, we get

Available credit on card = $8,000 - $4,007.50

= $3,992.50