Question

Abby's credit card statement shows a balance of $135.50 at the beginning of the month. During the month she makes purchases of $63.83. Each month a 1.5% interest charge is added to the statement balance. Abby then makes a payment of $50.00. What is her new balance?

Answer 1

$19.64

Explanation:

Step one:

given data

initial balance= $135.50

1.5% interest charge=0.015 of 135.5= $2.03

purchases= $63.83

payment=$50.00

Step two:

at the beginning of the month, the balance after the %1.5 tax will be

=135.5-2.03=133.47

Also the purchase and the payment amount to 63.83+50=$113.83

the new balance after purchases and payment is

=133.47-113.83

=$19.64