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Pavi has a credit line of [tex]\$8,000[/tex] on his credit card. Review the summary of his credit card statement. How much credit does Pavi currently have available on this card?

\begin{tabular}{|l|l|c|l|l|l|}
\hline
\multirow{2}{*}{Summary} & \begin{tabular}{l}
Previous \\
Balance
\end{tabular} & Payments/Credits & \begin{tabular}{l}
New \\
Purchases
\end{tabular} & \begin{tabular}{l}
Finance \\
Charge
\end{tabular} & \begin{tabular}{l}
New \\
Balance
\end{tabular} \\
\cline { 2 - 6 } & [tex]\$2,500.00[/tex] & [tex]\$1,500.00[/tex] & [tex]\$3,000.00[/tex] & [tex]\[tex]$7.50[/tex] & [tex]\$[/tex]4,007.50[/tex] \\
\hline
\end{tabular}

A. [tex]\$3,992.50[/tex]

B. [tex]\$5,000.00[/tex]

C. [tex]\$5,500.00[/tex]

D. [tex]\$6,500.50[/tex]



Answer :

GinnyAnswer
To determine how much credit Pavi currently has available on his credit card, follow these steps:

1. Identify the total credit limit:
- Pavi's credit line is \[tex]$8,000. 2. Understand the components of the new balance: - Previous balance: \$[/tex]2,500.00
- Payments/Credits: \[tex]$1,500.00 - New Purchases: \$[/tex]3,000.00
- Finance Charge: \[tex]$7.50 3. Calculate the new balance: - Start with the previous balance: \$[/tex]2,500.00
- Subtract the payments/credits: \[tex]$2,500.00 - \$[/tex]1,500.00 = \[tex]$1,000.00 - Add the new purchases: \$[/tex]1,000.00 + \[tex]$3,000.00 = \$[/tex]4,000.00
- Add the finance charge: \[tex]$4,000.00 + \$[/tex]7.50 = \[tex]$4,007.50 Thus, the new balance is \$[/tex]4,007.50.

4. Calculate the available credit:
- Subtract the new balance from the total credit limit: \[tex]$8,000.00 - \$[/tex]4,007.50 = \[tex]$3,992.50 Therefore, the amount of credit Pavi currently has available on his card is \$[/tex]3,992.50.

So, the correct answer is:
A. \$3,992.50

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