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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 the amount of credit Pavi currently has available on his card, we need to follow these steps:

1. Identify Pavi's credit line:
Pavi's credit line is given as [tex]$8,000. 2. Identify the new balance: The new balance from Pavi's credit card statement is given as $[/tex]4,007.50.

3. Calculate the available credit:
The available credit can be calculated by subtracting the new balance from the credit line.
[tex]\[ \text{Available Credit} = \text{Credit Line} - \text{New Balance} \][/tex]
Substituting the values:
[tex]\[ \text{Available Credit} = 8000 - 4007.50 \][/tex]

4. Perform the subtraction:
[tex]\[ \text{Available Credit} = 3992.50 \][/tex]

Therefore, the amount of credit Pavi currently has available on this card is [tex]\( \$3,992.50 \)[/tex].

The correct answer is:
A. $3,992.50

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