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Gabriella's credit card has an APR of [tex]24\%[/tex] calculated on the previous monthly balance. Her credit card record for the last 7 months is shown in the table below.

\begin{tabular}{cccccccc}
\hline \begin{tabular}{c}
End of \\
Month
\end{tabular} & \begin{tabular}{c}
Previous \\
Balance
\end{tabular} & \begin{tabular}{c}
New \\
Charges
\end{tabular} & \begin{tabular}{c}
Payment \\
Received
\end{tabular} & \begin{tabular}{c}
Finance \\
Charges
\end{tabular} & \begin{tabular}{c}
Principal \\
Paid
\end{tabular} & \begin{tabular}{c}
New \\
Balance
\end{tabular} \\
\hline
1 & \[tex]$0.00 & \$[/tex]351.22 & \[tex]$0.00 & \$[/tex]0.00 & \[tex]$0.00 & \$[/tex]351.22 \\
2 & \[tex]$351.22 & \$[/tex]297.88 & \[tex]$140.00 & \$[/tex]7.02 & \[tex]$132.98 & \$[/tex]516.12 \\
3 & \[tex]$516.12 & \$[/tex]72.98 & \[tex]$60.00 & \$[/tex]10.32 & \[tex]$49.68 & \$[/tex]539.43 \\
4 & \[tex]$539.43 & \$[/tex]188.64 & \[tex]$280.00 & \$[/tex]10.79 & \[tex]$269.21 & \$[/tex]468.86 \\
5 & \[tex]$468.86 & \$[/tex]281.29 & \[tex]$220.00 & \$[/tex]9.18 & \[tex]$210.82 & \$[/tex]529.32 \\
6 & \[tex]$529.32 & \$[/tex]93.47 & \[tex]$120.00 & \$[/tex]10.59 & \[tex]$109.41 & \$[/tex]513.38 \\
7 & \[tex]$513.38 & \$[/tex]344.78 & \[tex]$380.00 & \$[/tex]10.27 & \[tex]$369.73 & \$[/tex]488.43 \\
\hline
\end{tabular}

On what amount of money will Gabriella be charged interest for month 8?

A. \[tex]$344.78
B. \$[/tex]380.00
C. \[tex]$513.38
D. \$[/tex]488.43



Answer :

GinnyAnswer
To determine on what amount of money Gabriella will be charged interest for month 8, let's analyze her credit card record for the previous months.

At the end of each month, the balance at that time will be used to calculate the interest charges for the following month.

Here is the detailed breakdown:
- At the end of Month 1, the balance is [tex]$351.22. - At the end of Month 2, the balance is $[/tex]516.12.
- At the end of Month 3, the balance is [tex]$539.43. - At the end of Month 4, the balance is $[/tex]468.86.
- At the end of Month 5, the balance is [tex]$529.32. - At the end of Month 6, the balance is $[/tex]513.38.
- At the end of Month 7, the balance is [tex]$488.43. For interest calculations in month 8, we need the balance from the end of month 7, which is $[/tex]488.43. Therefore, the amount of money on which Gabriella will be charged interest for month 8 is:

[tex]\[ \boxed{488.43} \][/tex]

So, the correct answer is:
D. [tex]$\$[/tex] 488.43$

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