Question

Regina Kong received her credit card account statement. She had a previous balance of $652.08 and a finance charge of $1.34. She made purchases of $15.78, $102.98, and $75.00. Her account was credited $25.00. She made a payment of $500.00. What is her new balance?

Answer 1

By adding the initial balance to the new purchases, subtracting the credit to the account, and subtracting the payment, Regina Kong's new credit card balance is $322.18.

Step-by-step explanation:

Regina Kong's new credit card balance can be calculated by factoring in her previous balance, new purchases, the credit to her account, her payment, and any finance charges. Initially, she had a balance of $652.08 and she was charged a finance charge of $1.34, bringing her initial amount to $653.42. Her new purchases amounted to $15.78, $102.98, and $75.00, which total to $193.76. Adding these purchases to her initial amount results in $847.18. Regina's account was credited $25.00, which reduces the amount to $822.18. Lastly, she made a payment of $500.00. Subtracting this payment from the total gives us a new balance of $322.18.

Step by step calculation:

1. Start with the previous balance: $652.08
2. Add the finance charge: $652.08 + $1.34 = $653.42
3. Add the total of new purchases: $653.42 + $15.78 + $102.98 + $75.00 = $847.18
4. Subtract the account credit: $847.18 - $25.00 = $822.18
5. Subtract the payment made: $822.18 - $500.00 = $322.18

Regina Kong's new balance after these transactions is $322.18.