Question

Lanny’s credit card has an apr of 33%, calculated on the previous monthly balance. His credit card record for the last 7 months is shown in the table below. What is the new balance at the end of month 7?
A. $83.39
B. $91.98
C. $99.00
D. $74.43

Answer 1

The answer is A ( $83.39 )

Answer 2

Answer:

Option A - $83.39

Step-by-step explanation:

Given : Lanny’s credit card has an APR of 33%, calculated on the previous monthly balance. His credit card record for the last 7 months is shown in the table below.

To find : What is the new balance at the end of month 7?    

Solution :  

From the table, the information of 7 month

Previous balance = $74.33

Payment = $91.98

Unpaid balance = Previous balance - Payments

                          = $74.33 - $91.98

Unpaid balance  = -$17.65

Finance charge = $2.04

New charges = $99

New balance =  Unpaid balance + finance charge + new charges

New balance =  -$17.65 +$2.04+ $99

New balance =$83.39

Therefore, Option A is correct.