Somebody help on number 7 please. Thanks
1 answer:
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The $11.80 will be her July finance charge option (c) is correct.
It is given that Elizabeth’s credit card computes her finance charges using the previous balance method and a 30-day billing cycle.
It is required to find the July finance charge.
<h3>What is APR?</h3>It is defined as the annual percentage rate that represents the yearly interest rate on the borrowing.
We have a principal amount = $969.26
APR = 14.61 %
Per month percent rate = ⇒ 1.2175 %
We can calculate the finance charge from the given formula:
Finance charge = Principal value×rate×Time
= 969.29×1.2175%×1
= $11.80
Thus, the $11.80 will be her July finance charge.
Learn more about the finance charge here: