In: Finance
On March 5, the billing date Anna has a balance of 567.20 on her credit card. The transcations during the following month were
March 8 Payment $275.00
March 21 Charge Shopping $330.00
March 27 Charge Nails $190.80
April 2 Charge Clothing $84.75
FInd the finance charge on April 5 using the unpaid balance method. (the unpaid balance uses the final balance on April 5 as the principal. Interest rate ise 1.1% per month.
Find the balance due on April 5 for the unpaid balance method.
Unpaid balance = Previous balance - payments + Purchases = 567.2 - 275 + (330 + 190.8 + 84.75) = 897.75
Finance charge as on april 5 = Unpaid balance * interest rate = 897.75 * 1.1% = $9.88
Balance as on April 5 = Unpaid balance + finance charge
= 897.75 + 9.88 = $907.62