Question

The monthly finance charge on a charge account is 1.5% on the unpaid amount up to $500, and 1% on the unpaid amount over $500. What is the charge on an unpaid amount of $750?

Answer 1

Break down $750. Where the first $500 is charged 1.5% and the remaining $250 is charged 1%

$500 * 1.5% = $7.50
$250 * 1.0% = $2.50

The total charge for the unpaid amount of $750 is $10.00