If you are trying to build credit by using a credit card, each time you make a p

Question

If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 9% APR and the following transactions? (Round your answer to the nearest cent.)

31-day billing cycle 10/1 Previous balance $ 1,169 10/3 Credit $74 cr. 10/12 Charge: King Soopers $153 10/15 Payment $360 cr. 10/25 Charge: Delta $326 10/30 Charge: Holiday Fun $66

Explanation / Answer

Hi,
Total credits=74+360=434
Total spends=153+326+66=545
i.e net payable= Prev balance+Total spends-Total credits= 1169+545-434=1280
since given APR of 9%, for one month she owes 1280* (0.09/12)+1280=$1289.6
Thumbs up if this was helpful otherwise let me know in comments

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