Compute the new balance on a credit card assuming that beginning balance = $450.00 purchases during the month = $300.00 payments made within the grace period = $250.00 interest rate = 18%
- beginning balance = $450.00
- purchases during the month = $300.00
- payments made within the grace period = $250.00
- interest rate = 18%
A. $516.00
B. $550.00
C. $503.00
D. $1,000.00
Ans: C. $503.00
Explanation:
Beginning balance $450
Less payment $250
Balance subject to interest $200
Interest ($200 × 0.015) $3
Current month's purchases $300
New balance $503
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