Question

Stephen Joyce’s charge account uses the unpaid-balance method and charges a monthly period rate of 1.9%. His finance charge was $21.77. Find his unpaid balance.

Answer 1

Let the unpaid balance amount be represented by = x

Rate of interest is = 1.9 %

Stephen paid an amount of = $21.77

This 21.77 is the amount of 1.9% of x

So, $\frac{1.9x}{100}=21.77$

$1.9x=2177$

x = 1145.789 or rounding it we get 1145.79

So, the unpaid balance of Stephen Joyce is $1145.79