Question

Solve the problem using the previous balance method.

Answer 1

Annual Percent Rate (APR) = 18%

Rate during the current billing cycle = 18/12 = 1.5%

Balance at the beginning of the billing cycle = 60.15

Payment   51.00

Balance                                                                 10.15

Purchase 91.27        

Balance                                                                - 81.12

Finance Charge 60.15 * 0.015 =                             0.90

New Balance                                                       - 82.02