Question

Omar's credit card has an APR of 26% calculated on the previous monthly

balance. His credit card record for the last 7 months is shown in the table
below.
End of
Month
1
2.
3
4
5
6
7
Previous
Balance
$0.00
$301.23
$254.41
$169.46
$191.45
$121.58
$195.55
New
Charges
$301.23
$266.65
$89.54
$198.32
$165.98
$211.34
$397.54
Payment
Received
$0.00
$320.00
$180.00
$180.00
$240.00
$140.00
$340.00
Finance
Charges
$0.00
$6.53
$5.51
$3.67
$4.15
$263
$4.24
Princip
Paid
$0.00
$313.47
$174.49
$176.33
$235.85
$137.37
$335.76
lew
Balance
$301.23
$254.41
$169.46
$191.45
$121.58
$195.55
$257 33
On what amount of money will Omar be charged interest for month 8?
A. $195.55
B. $257.33
C. $397.54
D. $340.00

Answer 1

B. $257.33

Explanation:

Interest will be charged on the New Balance after the Month 7 payment, $257.33.