Guadalupe's credit card has an APR of 23%, calculated on the previous monthly balance, and a minimum payment of 2%, starting the month after the
first purchase. Her credit card record for the last 7 months is shown in the
table below.
End of
month
Previous
balance
$0.00
$900 00
$899.25
$898.50
589775
$89700
$896 26
New
charges
$900.00
$0.00
$0.00
50.00
$0.00
50.00
$0 00
Payment
received
$0.00
$18.00
$17.99
$17.97
$17.96
$17.94
$17.93
Finance
charges
30.00
$17.25
$17.24
$1722
$1721
$17 19
$17 18
Principal
paid
$0.00
$0.75
$0.75
50.75
$0.75
$0.75
50.75
New
balance
$900.00
$899.25
$898,50
$897.75
5897.00
$896 26
$895 51
5
6
7
How is the new balance calculated?
A. Previous balance + new charges - principal paid
B. Previous balance - new charges + principal paid
Ο Ο Ο Ο
C. Previous balance + new charges + principal paid
D. Previous balance - new charges - principal paid