Question

Bianka has a credit line of $8,000. She had a previous balance of $567.91 and made a payment of
$1,200. Her total purchases are $986.79, and she has been charged a $10.00 finance charge. What is her available credit?​

Answer 1

Answer: $\ 6371.12$

Step-by-step explanation:

We have the following data:

Bianka's credit line = $8,000

Bianka's previous balance = $567.91

Payments = $1,200

Total purchases = $986.79

Finance charge = $10.00

Well, firstly we have to find Bianka's current balance, which is her previous balance minus all her payments, purchases and charges:

Bianka's current balance = Bianka's previous balance - (Payments + Total purchases + Finance charge)

Bianka's current balance = $567.91 - ($1,200 + $986.79 + $10.00)

Bianka's current balance = -$1628.88

Now we can find her available credit, which is her credit line with the addition of the calculated current balance:

Bianka's available credit = Bianka's credit line + Bianka's current balance

Bianka's available credit = $8,000 + (-$1628.88)

Finally we have:

Bianka's available credit = $6371.12