Mr. Jensen owed $34.75 on his Internet service. He accidentally paid $37.45. When his next statement came, it showed a balance of –$2.70. Which statement about this bill is true?

Question

Mr. Jensen needs to pay $2.70 more on his next bill
Mr. Jensen needs to pay $2.70 less on his next bill.
Mr. Jensen needs to pay $5.40 more on his next bill.
Mr. Jensen needs to pay $5.40 less on his next bill.

Answer 1

To determine the correct statement regarding Mr. Jensen's bill, we first analyze the payments and balances.

1. Mr. Jensen owed $34.75 for his Internet service.
2. He accidentally paid $37.45, which means he overpaid by: \[ 37.45 - 34.75 = 2.70 \]
3. His next statement shows a balance of –$2.70.

A balance of –$2.70 indicates that Mr. Jensen has a credit of $2.70 on his account. This means the company owes him $2.70.

Now, for his next bill, since he has a credit of $2.70, he does not have to pay that amount; instead, the credit will reduce his next bill.

Thus, the true statement about what Mr. Jensen needs to pay on his next bill is: Mr. Jensen needs to pay $2.70 less on his next bill.