Solve the problem.
-On the November 1 billing date, Javier had a balance due of $507.23 on his credit card. The Transactions during the following month were: $\begin{array}{lll}
\text { November } 3 & \text { Charge: microwave } & \$ 253.40 \
\text { November } 4 & \text { Payment } & \$ 369.51 \
\text { November } 9 & \text { Charge: calculator } & \$ 123.03 \
\text { November } 22 & \text { Charge: clothing } & \$ 191.93
\end{array}$

The interest rate on the card is 1.3% per month. Using the previous balance method, find the new Balance on December 1.
A) $1082.18
B) $144.31
C) $712.67
D) $720.05

Question

Solve the problem.
-On the November 1 billing date, Javier had a balance due of $507.23 on his credit card. The Transactions during the following month were: $\begin{array}{lll}
\text { November } 3 & \text { Charge: microwave } & \$ 253.40 \
\text { November } 4 & \text { Payment } & \$ 369.51 \
\text { November } 9 & \text { Charge: calculator } & \$ 123.03 \
\text { November } 22 & \text { Charge: clothing } & \$ 191.93
\end{array}$

The interest rate on the card is 1.3% per month. Using the previous balance method, find the new Balance on December 1.
A) $1082.18
B) $144.31
C) $712.67
D) $720.05

Quizplus · Accepted Answer

To find the new balance on December 1 using the previous balance method, first calculate the interest on the November 1 balance. Interest = $507.23 * 1.3% = $6.594. Then, add the charges and subtract the payment from the November 1 balance before adding the interest: New Balance = $507.23 + $253.40 + $123.03 + $191.93 - $369.51 + $6.594 = $712.67.

Solve the Problem The Interest Rate on the Card Is 1