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alekssr
1 month ago
10

Lanny’s credit card has an apr of 33%, calculated on the previous monthly balance. His credit card record for the last 7 months

is shown in the table below. What is the new balance at the end of month 7?
A. $83.39
B. $91.98
C. $99.00
D. $74.43

Mathematics
2 answers:
babunello [11.8K]1 month ago
7 0
The selection is A ($83.39).
babunello [11.8K]1 month ago
5 0

Response:

Choice A - $83.39

Detailed explanation:

Information provided: Lanny’s credit card features an APR of 33%, which is computed based on the previous month’s balance. The table below outlines his credit card activity over the last 7 months.

Objective: What is the balance at the conclusion of month 7?

Calculation:

Based on the table, data for the 7-month period is as follows:

Last known balance = $74.33

Payment amount = $91.98

Outstanding balance = Last known balance - Payments

                          = $74.33 - $91.98

Outstanding balance  = -$17.65

Finance fee = $2.04

New transactions = $99

Ending balance =  Outstanding balance + finance fee + new transactions

Ending balance =  -$17.65 + $2.04 + $99

Ending balance = $83.39

Thus, Choice A is the correct answer.

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