What is his new balance? ?

Question

Chin Tam's charge account statement showed a previous balance of $7,112.55, a finance charge of $17.82, new purchases of $86.50 and $111.88, and a payment of $7,080.00. What is his new balance?

$12.13

$0.00

$248.75

$110.01

Answer 1

e. none of the above.

If you start with $7,112.55 and subtract the finance charge of $17.82, then subtract the new purchases of $86.50 and $111.88, then subtract the payment of $7,080.00, you have a negative balance of -$183.65.

Answer 2

$248.75