Compute the new balance on a credit card assuming that: ? Beginning balance = $450 ? Purchases during the month = $300 ? Payments made within the grace period = $250 ? Interest rate = 18%

A) $550
B) $503
C) $516
D) $1,000

Answer: B
Explanation: B)
Beginning balance $450
Less payment $250
Balance subject to interest $200
Interest ($200 × 0.015) $3
Current month's purchases $300
New balance $503

Business

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