You make a purchase of $600 on a new credit card with a yearly interest rate of 12%. You make a large payment your first month of $200. What is the credit card’s balance before you make the payment?(1 point)

Answer 1

The balance before making the payment would be $600.

Initial balance: $600
Payment made: -$200

Balance before payment: $600

Answer 2

Wrong You make a purchase of $600 on a new credit card with a yearly interest rate of 12%. You make a large payment your first month of $200. What is the credit card balance before you make the payment?(1 point)
Answer choices:

$606

$406

$472

$672

Answer 3

To find the balance before you make the payment, you first need to calculate the interest accrued on the $600 over the course of one month:

Interest = Principal * Rate * Time
Interest = $600 * 12% * (1/12) (since it's one month)
Interest = $600 * 0.01
Interest = $6

So, the balance before you make the payment would be:
$600 (purchase) + $6 (interest) = $606

Therefore, the correct answer is:
$606