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Dane's credit card has an APR of [tex]$16\%$[/tex], calculated on the previous monthly balance. His credit card record for the last 7 months is shown in the table below.

\begin{tabular}{ccccccc}
\hline \begin{tabular}{c}
End of \\
month
\end{tabular} & \begin{tabular}{c}
Previous \\
balance
\end{tabular} & \begin{tabular}{c}
New \\
charges
\end{tabular} & \begin{tabular}{c}
Payment \\
received
\end{tabular} & \begin{tabular}{c}
Finance \\
charges
\end{tabular} & \begin{tabular}{c}
Principal \\
paid
\end{tabular} & \begin{tabular}{c}
New \\
balance
\end{tabular} \\
\hline
1 & [tex]$\$[/tex] 0.00[tex]$ & $[/tex]\[tex]$ 302.00$[/tex] & [tex]$\$[/tex] 0.00[tex]$ & $[/tex]\[tex]$ 0.00$[/tex] & [tex]$\$[/tex] 0.00[tex]$ & $[/tex]\[tex]$ 302.00$[/tex] \\
2 & [tex]$\$[/tex] 302.00[tex]$ & $[/tex]\[tex]$ 229.00$[/tex] & [tex]$\$[/tex] 289.01[tex]$ & $[/tex]\[tex]$ 4.03$[/tex] & [tex]$\$[/tex] 284.98[tex]$ & $[/tex]\[tex]$ 246.02$[/tex] \\
3 & [tex]$\$[/tex] 246.02[tex]$ & $[/tex]\[tex]$ 19.00$[/tex] & [tex]$\$[/tex] 144.98[tex]$ & $[/tex]\[tex]$ 3.28$[/tex] & [tex]$\$[/tex] 141.70[tex]$ & $[/tex]\[tex]$ 123.32$[/tex] \\
4 & [tex]$\$[/tex] 123.32[tex]$ & $[/tex]\[tex]$ 47.00$[/tex] & [tex]$\$[/tex] 58.47[tex]$ & $[/tex]\[tex]$ 1.64$[/tex] & [tex]$\$[/tex] 56.83[tex]$ & $[/tex]\[tex]$ 113.49$[/tex] \\
5 & [tex]$\$[/tex] 113.49[tex]$ & $[/tex]\[tex]$ 83.00$[/tex] & [tex]$\$[/tex] 89.65[tex]$ & $[/tex]\[tex]$ 1.51$[/tex] & [tex]$\$[/tex] 88.14[tex]$ & $[/tex]\[tex]$ 108.35$[/tex] \\
6 & [tex]$\$[/tex] 108.35[tex]$ & $[/tex]\[tex]$ 148.00$[/tex] & [tex]$\$[/tex] 37.09[tex]$ & $[/tex]\[tex]$ 1.44$[/tex] & [tex]$\$[/tex] 35.65[tex]$ & $[/tex]\[tex]$ 220.71$[/tex] \\
7 & [tex]$\$[/tex] 220.71[tex]$ & $[/tex]\[tex]$ 193.00$[/tex] & [tex]$\$[/tex] 133.34[tex]$ & $[/tex]\[tex]$ 2.94$[/tex] & [tex]$\$[/tex] 130.40[tex]$ & $[/tex]\[tex]$ 283.31$[/tex] \\
\hline
\end{tabular}

On what amount of money will Dane be charged interest for month 8?

A. [tex]$\$[/tex] 283.31[tex]$

B. $[/tex]\[tex]$ 220.71$[/tex]

C. [tex]$\$[/tex] 193.00[tex]$

D. $[/tex]\[tex]$ 133.34$[/tex]

Sagot :

GinnyAnswer
To determine the amount of money on which Dane will be charged interest for month 8, we need to consider the previous monthly balance, as the interest is calculated based on that amount.

From the table provided, for the end of month 7, we have the following details:

- Previous balance: \[tex]$220.71 - New charges: \$[/tex]193.00
- Payment received: \[tex]$133.34 - Finance charges: \$[/tex]2.94
- Principal paid: \[tex]$130.40 - New balance: \$[/tex]283.31

The important detail here is that the finance charges for the upcoming month (month 8) will be calculated based on the previous month's new balance.

Let's focus on the information provided for month 7's new balance, which is \[tex]$283.31. This balance will be the starting point for calculating the interest for month 8. Therefore, the amount of money on which Dane will be charged interest for month 8 is: Answer: \$[/tex]283.31

So, the correct choice is:
A. \$283.31
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