Tonya has $150.00 on her credit card. If she leaves any balance on her card at the end of the month, she is charged 20% interest. If she makes a $50.00 payment on her card, what will be the new balance? Let's answer step by step:
Her card has a $150.00 balance and she makes a $50.00 payment so the new balance is 150 - 50 = $100.00. She didn't pay it off so she is charged 20% interest on her $100.00 balance so the interest is .20 * 100 = $20.00. Her balance was $100.00 and she was charged $20.00 in interest so her new balance is 100 + 20 = $120.00. The answer: 120.