Description
12) Susan has a credit card with a monthly rate of 1.4%. The account applies the unpaid balance method. The unpaid balance for her Apr billing cycle is $415.20. During the billing cycle she made purchases of $189.36 returned items for $17.08, and made a payment of $60.00. Find the new balance.
A) $567.45
B) $118.09
C) $533.29
D) $550.37
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Explanation & Answer
C) 533.29
Interest will only be charged on outstanding balances, in this case the 415.20 previous balance. That means she has an interest charge of $5.81 (1.4% of the unpaid balance), plus new purchases of $189.36 minus returns of $17.08 and additional payments of $60.
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