Question

the Aug 6 balance on the credit card was $383. A payment of $250 was made on Aug 17, and a chargee of # 357 was made on august 25. if the finance charge is base on 2% find:

the finance charge of the month

Answer 1

Answer:

The finance charge of the month is $7.66

Explanation:

According to the given data, we have the following:

(P) Credit card statement was $383 at the Aug 6

(r) finance charge is base on 2%

t = tenure

August 25 chargee of 357

Payment of $250 made on Aug 17

Hence, to determine the finance charge we use the equation I=Ptr,

So = ($383) (1) (0.02)

=$7.66

The finance charge is $ 7.66

Then, She also made a payment of $250.00 during the month, so In order to calculate the new balance end of the month or on the first day of the Sept billing cycle we would have to make the following calculation

new balance=Old unpaid balance + Finance charge + Other charges during the month - Payment

= $383 + $7.66 + $357.00 - $250.00

= $497.66

The new balance end of the month or on the first day of the Sept billing cycle is $497.66