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Whitepunk [10]
3 years ago
10

The account balance on April 1st is $60.15. On April 15th a payment of $51.00 is made. On April 25th a purchase of $91.27 is mad

e. What is the finance charge if the annual rate is 18%? What is the new account balance? (Use the unpaid balance method.) Finance charge = New account balance =
Mathematics
2 answers:
user100 [1]3 years ago
7 0

Answer:

Finance charge = $0.13725

New balance =$100.55

Step-by-step explanation:

Given : The account balance on April 1st is $60.15. On April 15th a payment of $51.00 is made. On April 25th a purchase of $91.27 is made. The annual rate is 18%.

To find : What is the finance charge and what is his new account balance?  

Solution :

Previous balance = $60.15

Payment = $51

We find the unpaid balance,

Unpaid balance = Previous balance - Payments

                           = $60.15 - $51

Unpaid balance  = $9.15

We have given rate of interest= 18%=0.18

Now, we find the finance charge

Finance charge = Finance rate × Unpaid balance

Finance charge = \frac{0.18}{12} \times 9.15

Finance charge = $0.13725

New balance =  Unpaid balance + finance charge + new transaction

New balance =  $9.15 +$0.13725+ $91.27

New balance =$100.55

natta225 [31]3 years ago
5 0
Hi there:-)

Unpaid balance=60.15−51=9.15
Finance charge=9.15×(0.18÷12)=0.14
New balance=9.15+0.14+91.27=100.56

Hope it helps
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