Similar Question
Katie had an unpaid balance of $1,734.50 on her credit card statement at the beginning of January. She made a payment of $165.00 during the month. If the interest rate on Katie's credit card was 7% per month on the unpaid balance, find the finance charge and the new balance on February 1. (Points : 1)
Finance charge = $119.53; new balance = $1,689.03
Finance charge = $121.42; new balance = $1,690.92
Finance charge = $125.53; new balance = $1,695.03
Finance charge = $131.56; new balance = $1,701.06
First, let's figure out the finance charge.
7% of $1734.50
=.07*1734.50=121.42
Thus, the finance charge is $121.42.
Now, let's figure out the remaining balance
1734.50+121.42-165=1690.92
Therefore, the remaining balance is $1690.92, and the correct answer is the second choice.
Similar Question
Phil had an unpaid balance of $1,854.50 on his credit card statement at the beginning of December. He made a payment of $45.00 during the month. If the interest rate on Phil's credit card was 2.5% per month on the unpaid balance, find the finance charge and the new balance on January 1. (Points : 1)
Finance charge = $44.47; new balance = $1,853.97
Finance charge = $50.47; new balance = $1,859.97
Finance charge = $56.50; new balance = $1,866.00
Finance charge = $46.36; new balance = $1,855.86
First, we should find the finance charge. This will be 2.5% of $1854.50, or
.025*1854.5=46.36.
Therefore, the finance charge for this period is $46.36.
To calculate the new balance, add the finance charge to the original balance, and then subtract the amount he pays off.
1854.50+46.36-45=1855.86
Therefore, the fourth choice is correct.
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