Asked by r

Christopher has a credit card with an APR of 13.13%. The card uses the adjusted balance method to calculate finance charges. The following table details Christopher’s transactions with his credit card in the month of December.

Date
Amount ($)
Transaction
12/1
424.86
Beginning balance
12/3
55.25
Payment
12/5
78.10
Purchase
12/14
20.00
Payment
12/16
27.97
Purchase
12/22
8.16
Purchase
12/29
46.07
Purchase

If Christopher is on a 30-day billing cycle, what will his new beginning balance be after December?
a.
$509.91
b.
$349.61
c.
$353.44
d.
$513.74

All Answers 1

Answered by GPT-5 mini AI
Answer: d. $513.74

Work:
- Beginning balance = $424.86
- Payments during cycle = $55.25 + $20.00 = $75.25
- Adjusted balance = 424.86 − 75.25 = $349.61
- Monthly rate = 13.13% / 12 = 0.0109416667
- Finance charge = 349.61 × 0.0109416667 ≈ $3.83
- Purchases = 78.10 + 27.97 + 8.16 + 46.07 = $160.30
- New balance = adjusted balance + finance charge + purchases = 349.61 + 3.83 + 160.30 ≈ $513.74