On March 5, the billing date Anna has a balance of 567.20 on her credit card....

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.

Solutions

Expert Solution

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

jeff jeffy answered 2 years ago

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