Answered

Her credit card record for the last 7 months is shown in the table below:

| End of month | Previous balance | New charges | Payment received | Finance charges | Principal paid | New balance |
|--------------|------------------|-------------|------------------|-----------------|----------------|-------------|
| 1 | [tex]$0.00 | $[/tex]102.00 | [tex]$0.00 | $[/tex]0.00 | [tex]$0.00 | $[/tex]102.00 |
| 2 | [tex]$102.00 | $[/tex]212.00 | [tex]$76.00 | $[/tex]1.53 | [tex]$74.47 | $[/tex]239.53 |
| 3 | [tex]$239.53 | $[/tex]88.00 | [tex]$44.99 | $[/tex]3.59 | [tex]$41.40 | $[/tex]286.13 |
| 4 | [tex]$286.13 | $[/tex]26.00 | [tex]$28.57 | $[/tex]4.29 | [tex]$24.28 | $[/tex]287.85 |
| 5 | [tex]$287.85 | $[/tex]73.00 | [tex]$11.85 | $[/tex]4.32 | [tex]$107.53 | $[/tex]253.32 |
| 6 | [tex]$253.32 | $[/tex]60.00 | [tex]$49.94 | $[/tex]3.80 | [tex]$46.14 | $[/tex]267.18 |
| 7 | [tex]$267.18 | $[/tex]229.00 | [tex]$255.54 | $[/tex]4.01 | [tex]$251.53 | $[/tex]244.65 |

On what amount of money will Saundra be charged interest for month 8?

A. [tex]$267.18
B. $[/tex]244.65
C. [tex]$255.54
D. $[/tex]229.00



Answer :

GinnyAnswer
To determine the amount on which Saundra will be charged interest for month 8, we need to identify her new balance at the end of month 7. This new balance will be carried over to month 8, and it is the amount on which interest will be calculated.

Here is a concise interpretation of the given data for month 7:

- Previous Balance: [tex]$267.18 - New Charges: $[/tex]229.00
- Payment Received: [tex]$255.54 - Finance Charges: $[/tex]4.01
- Principal Paid: [tex]$251.53 - New Balance: $[/tex]244.65

The key piece of information is the "New Balance" at the end of month 7, which reflects all previous balances, new charges, payments, and finance charges incurred up to this point. Therefore, Saundra will be charged interest on her new balance at the end of month 7, which is:

[tex]\[ \$244.65 \][/tex]

Hence, the correct answer is:

B. \$244.65

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