You make a purchase of $600 on a new credit card with a yearly interest rate of 12%. You make a large payment your first month of $200. What is the credit card’s balance before you make the payment?(1 point)
$472
$406
$672
$606
use the answers I gave you
Based on the answer choices you provided, the correct answer is:
$606
Since the balance before making the $200 payment is $600, and assuming no interest was added during that period, the balance would be $600.
So, the credit card's balance before you make the payment is $600.
Answer: $606
$600 - $200 = $400
The interest on $400 at 12% for one month is:
$400 * (12%/12) = $400 * 0.01 = $4
Therefore, the credit card's balance before you make the payment is:
$400 + $4 = $404
Answer: $404