An invoice shows a subtotal of 150.00, tax of 7.50, and a payment of 50.00 already applied. What is the balance due?

An invoice shows a subtotal of 150.00, tax of 7.50, and a payment of 50.00 already applied. What is the balance due?

• A. 97.50
• B. 110.00
• C. 107.50
• D. 132.50

Answer: (C)

When you compute the balance due, start by adding the tax to the subtotal to get the total amount owed before any payments. Then subtract any payments already applied. Here, 150.00 (subtotal) plus 7.50 (tax) gives 157.50. Subtract the 50.00 payment that has already been applied, leaving 107.50. So, the balance due is 107.50. The other options would come from leaving out the tax or miscounting the payment.

When you compute the balance due, start by adding the tax to the subtotal to get the total amount owed before any payments. Then subtract any payments already applied.

Here, 150.00 (subtotal) plus 7.50 (tax) gives 157.50. Subtract the 50.00 payment that has already been applied, leaving 107.50.

So, the balance due is 107.50. The other options would come from leaving out the tax or miscounting the payment.