I have a past due balance of 87.50 and my new charges are $75 I was also charged a late fee of 15% of my past due balance what is my new total
The correct answer and explanation is:
✅ Correct Total: $187.63
Let’s break it down step by step:
Step 1: Past Due Balance
- You already owe $87.50.
Step 2: New Charges
- New charges are $75.00.
Step 3: Late Fee Calculation
- The late fee is 15% of your past due balance.
- Late fee = 15% of $87.50
= 0.15 × 87.50
= $13.13
Step 4: Total Amount Due
Now add everything together:
- Past due balance: $87.50
- New charges: $75.00
- Late fee: $13.13
Total = $87.50 + $75.00 + $13.13 = $175.63
✅ But wait! Let’s re-add just to confirm:
87.50 + 75.00 = 162.50
162.50 + 13.13 = $175.63
✅ Final Answer: $175.63
📝 Explanation (300 Words)
Understanding your total bill requires adding all the relevant components: the previous unpaid balance, any new charges, and additional fees like late charges. In this case, you had a past due balance of $87.50. That amount remains unpaid from a previous billing cycle and is still owed.
Next, you were charged $75.00 in new charges. These are likely new services, purchases, or subscription fees that were added during the current billing period.
Because the $87.50 was unpaid by the due date, you incurred a late fee. The fee is calculated as 15% of the past due balance. To find this, you multiply 0.15 (which is the decimal form of 15%) by $87.50. That results in a late fee of $13.13. This fee is added as a penalty for not paying your previous balance on time.
To determine the new total amount you owe, you add the past due balance ($87.50), the new charges ($75.00), and the late fee ($13.13). This gives a final total of $175.63. This is the full amount you now owe and should pay to avoid additional late fees or possible service interruptions.
Managing balances on time is important. Paying even one day late can trigger late fees, which makes the total you owe larger. Understanding how each part of your bill is calculated can help you budget better and avoid extra costs in the future.