Question

multiple choice 1 point
11
derek has a credit card with a $1000 credit limit. his outstanding balance is currently $800. what is the maximum amount he can now spend on this credit card?
$800 $1800 $1000 $200

Explanation:

Step1: Determine the formula

The formula to find the available credit (maximum amount that can be spent) is \( \text{Available Credit}=\text{Credit Limit}-\text{Outstanding Balance} \)

Step2: Substitute the values

Given that the credit limit is \( \$1000 \) and the outstanding balance is \( \$800 \). So, \( \text{Available Credit}=1000 - 800\)

Step3: Calculate the result

\(1000-800 = 200\)

Answer:

\(\$200\)