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
589850
$897.75
$897 00
5896 26
New
charges
$900.00
$0.00
50.00
50.00
50.00
50.00
$0.00
Payment
received
$0.00
$18.00
$17.99
$17.97
$17.96
$17.94
$17.93
Finance
charges
$0.00
$17.25
$17 24
$17.22
$17.21
$17 19
$17 18
Principal
paid
50,00
$0.75
$0.75
50.75
$0.75
SO 75
$0.75
New
balance
$900.00
$899.25
$898 50
$897.75
5897.00
5896 26
$895 51
How is the new balance calculated?
O
A. Previous balance + new charges - principal paid
O
B. Previous balance + new charges + principal paid
O
C. Previous balance - new charges + principal paid
O
D. Previous balance - new charges - principal paid