The balance on Charity’s charge account is $224.15 after she charges $87.50 at her favorite store. When the bill arrives, she pays $50. The interest rate is 1.4% on the unpaid balance. What will her new balance be next month? Show all work.

Question

ganeshie8 · Answer

`The balance on Charity’s charge account is $224.15`

I think we should interpret this as outstanding balance.

ganeshie8 · Answer

On top of that she has spent $87.50 at her favorite store. 
So the overall outstanding balance would be ?

shadowlegendx · Answer

$$224.15 - 87.50 = ?$$

mecharv · Answer

Isnt charging a charge account mean topping up? that is adding credit to existing balance?

mecharv · Answer

If I am right it should be $224.14+$87.50-$50=$261.64

so to this amount the interest rate is calculated

mecharv · Answer

The question is not very clear. Sorry if I confused you.