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Natasha2012 [34]
3 years ago
8

1 point

Mathematics
1 answer:
Ahat [919]3 years ago
8 0

James's current balance on his credit card is <u>$900.</u>

This amount represents the card's balance before the current charge of $1,500 and the finance charge of $60.

<h3>What is a credit card balance?</h3>

A credit card balance is the amount of the charges made on a credit card, including the finance charges, and therefore, owed to a credit card company.

<h3>Data and Calculations:</h3>

Current current balance = $x

APR (Annual Percentage Rate) of interest = 30%

Monthly APR = 2.5% (30%/12)

Current purchase for the month = $1,500

Finance charge for the month = $60

Finance charge for the current purchase = $37.50 ($1,500 x 2.5%)

Finance charge for the current balance = $22.50 ($60 - $37.50)

The current balance that attracts the finance charge of $22.50 will be $900 ($22.50/2.5%).

<u>Alternatively:</u>

Since the monthly APR is 2.5% and the finance charge is $60 for the month, the balance at the end of the month is $2,400 ($60/2.5%).

Thus, the current balance on James' credit card is $900 ($2,400 - $1,500) while the end-of-the-month balance is $2,460 ($900 + $1,500 + $60).

Learn more about credit card balance at brainly.com/question/6872962

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Step-by-step explanation:

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(5.4582 ; 6.8618)

Step-by-step explanation:

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