Question

PLS HELP!!! What will Francisco be charged for interest for month 8? Francisco's credit card has an APR of 28.98%, calculated on the previous monthly balance.

Answer 1

Answer:

Previous monthly balance = $654.19

Interest charge = $464.61

Step-by-step explanation:

Given : The table of 7 months. Francisco's credit card has an APR of 28.98%.

To find : What will Francisco be charged for interest for month 8 and calculated on the previous monthly balance.

Solution :

New balance of 7th month is equal to the previous monthly balance. of 8th month.

So, we have to find the new balance of 7 month

New balance =  Unpaid balance + finance charge + new transaction

From the table, the 7 month information is

Previous balance = $325.27

payment received = $22.94

Finance charge = $7.86

New charges = $344

Unpaid balance = Previous balance - Payment

                           = $325.27 - $22.94

Unpaid balance  = $302.33

New balance =  Unpaid balance + finance charge + new transaction

New balance =  $302.33 + $7.86 + $344

New balance =  $654.19

Previous monthly balance of 8th months is $654.19

Interest rate of 8th month is 28.98%

$654.19\times\frac{28.98}{100}=189.58$

Interest for month 8 previous balance is

$I=654.19-189.58\\I=\ 464.61$