To calculate the new balance on the account after considering all charges and payments, follow these steps:
1. Identify the values from the statement:
- Previous Balance: \[tex]$300.00
- Finance Charge: \$[/tex]25.00
- New Purchases: \[tex]$150.00
- Payments: \$[/tex]-200.00 (payments are represented as negative values)
- Credits: \[tex]$0.00
2. Understand the process:
- The new balance is obtained by adding all positive charges (previous balance, finance charge, new purchases, and credits) and then subtracting the payments.
3. Calculate step-by-step:
1. Start with the previous balance and add the finance charge:
\[
300.00 + 25.00 = 325.00
\]
2. Add the new purchases:
\[
325.00 + 150.00 = 475.00
\]
3. Subtract the payments:
\[
475.00 - 200.00 = 275.00
\]
4. Add the credits (since the credits value is \$[/tex]0.00, it doesn't change the balance):
[tex]\[
275.00 + 0.00 = 275.00
\][/tex]
4. Final Calculation:
- The new balance is \[tex]$275.00.
So, the new balance on this account after all charges and payments are applied is \$[/tex]275.00.
