ruths credit card has an apr of 10.91%, and it computes finance charges using the previous balance method on…

ruths credit card has an apr of 10.91%, and it computes finance charges using the previous balance method on a 30 - day billing cycle. during the april billing cycle, she made a $45.17 payment on april 10th and a $88.34 purchase on april 17th. her total at the start of may was $847.64. what was her balance at the beginning of april?\na. $890.91\nb. $797.16\nc. $796.87\nd. $804.47\nplease select the best answer from the choices provided\no a\no b\no c\no d

ruths credit card has an apr of 10.91%, and it computes finance charges using the previous balance method on a 30 - day billing cycle. during the april billing cycle, she made a $45.17 payment on april 10th and a $88.34 purchase on april 17th. her total at the start of may was $847.64. what was her balance at the beginning of april?\na. $890.91\nb. $797.16\nc. $796.87\nd. $804.47\nplease select the best answer from the choices provided\no a\no b\no c\no d

Answer

Answer:

D. $804.47

Explanation:

Step1: Set up the balance - calculation equation

Let the balance at the beginning of April be $x$. The finance - charge is calculated using the previous - balance method. The payment of $45.17$ on April 10th and the purchase of $88.34$ on April 17th affect the balance. The balance at the start of May is $847.64$. So the equation is $x-45.17 + 88.34=847.64$.

Step2: Simplify the left - hand side of the equation

$x+(88.34 - 45.17)=847.64$, which simplifies to $x + 43.17=847.64$.

Step3: Solve for $x$

Subtract $43.17$ from both sides of the equation: $x=847.64−43.17$. $x = 804.47$.