You purchased a smartphone using your Visa® credit card. Your Visa has a monthly finance charge of 2.5% beginning the first of the next month. The smartphone cost $499.95 and the sales tax is $37.50 for a total cost of $537.45. You plan to pay $100.00 per month on your Visa bill. The first month’s statement will show a balance including the $537.45, but no interest charge on that amount. What will the second month show as the beginning balance?

$542.45

$548.20

$550.89

$549.27