Suppose You Have a Credit Card Balance of $500 That

Multiple Choice

Suppose you have a credit card balance of $500 that you were unable to pay off. During the current month you purchase another $250 worth of products. You made a payment during the grace period of $300. Assuming your retail credit card company charges an annual interest rate of 22%, compute your new balance.

A) $510.00
B) $250.00
C) $494.00
D) $453.67