Answered

Select the correct answer.

Nikki has a credit line of [tex]\$6,000[/tex] on her credit card. Review the summary of her latest credit card statement.

\begin{tabular}{|l|l|c|c|c|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} \\
\hline
& [tex]\$3,750.50[/tex] & [tex]\$2,500.00[/tex] & [tex]\$2,299.00[/tex] & [tex]\[tex]$55.00[/tex] & [tex]\$[/tex]3,604.50[/tex] \\
\hline
\end{tabular}

What is the available credit on Nikki's card?

A. [tex]\$2,395.50[/tex]

B. [tex]\$2,500.00[/tex]

C. [tex]\$3,500.00[/tex]

D. [tex]\$3,701.00[/tex]



Answer :

GinnyAnswer
To determine Nikki's available credit, we need to follow these steps:

1. Identify the credit line:
- Nikki's credit line is \[tex]$6,000.00. 2. Identify the new balance: - According to the summary, the new balance on Nikki's credit card is \$[/tex]3,604.50.

3. Calculate the available credit:
- The available credit is the credit line minus the new balance.
- Therefore, you need to subtract the new balance from the credit line:

[tex]\[ \text{Available Credit} = \text{Credit Line} - \text{New Balance} \][/tex]

[tex]\[ \text{Available Credit} = 6,000.00 - 3,604.50 = 2,395.50 \][/tex]

So, the available credit on Nikki's card is [tex]\(\$ 2,395.50\)[/tex].

Thus, the correct answer is:
A. \$2,395.50