Guadalupe's credit card has an APR of 23%, calculated on the previous
monthly balance, and a minimum payment of 2%, starting the month after the
first purchase. Her credit card record for the last 7 months is shown in the
table below.
End of
month
Previous
balance
$0.00
$900.00
$899.25
$898.50
$897.75
$897.00
$896.26
New
charges
$900.00
$0.00
$0.00
$0.00
50.00
$0.00
$0.00
Payment
received
$0.00
$18.00
$17.99
$17.97
$17.96
$17.94
$17.93
Finance
charges
$0.00
517 25
$17.24
$17.22
$17.21
$17.19
$17.18
Principal
paid
$0.00
$0.75
$0.75
$0.75
$0.75
$0.75
New
balance
$900.00
$899.25
$898.50
$89775
$897.00
$896 26
$895.51
VO
SO 75
How is the new balance calculated?