Bianka has a credit line of $8,000. She had a previous balance of $567.91 and made a payment of $1,200. Her total purchases are $986.79, and has been charged a $10.00 finance charge. What is her available credit?
The current balance is the difference of previous balance and the payment and purchases and finance charge.
Current Balance = Previous balance - (payment + purchases + finance charge)
Current Balance = $567.91 - ($1200+$986.79+$10)
Current Balance = -$1628.88
Now, Available Credit = credit line + current balance
Available Credit = $8000 + (-$1628.88)
Available Credit = $6371.12
Answer is - $6371.12