Answer:
Option A - $83.39
Explanation:
Given : 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.
To find : What is the new balance at the end of month 7?
Solution :
From the table, the information of 7 month
Previous balance = $74.33
Payment = $91.98
Unpaid balance = Previous balance - Payments
= $74.33 - $91.98
Unpaid balance = -$17.65
Finance charge = $2.04
New charges = $99
New balance = Unpaid balance + finance charge + new charges
New balance = -$17.65 +$2.04+ $99
New balance =$83.39
Therefore, Option A is correct.