Calculate the unpaid balance, finance charge, and new balance using the unpaid balance method. Note: interest rate is given as a
1 answer:
Answer:
Unpaid balance = $56.96
Finance charge = $0.8544
New balance =$171.7944
Step-by-step explanation:
Given : Previous balance = $91.96
Payments/credits = $35.00
Monthly rate = 1.5%
New purchases = $113.98
To calculate : The unpaid balance, finance charge, and new balance using the unpaid balance method.
Solution :
Unpaid balance = Previous balance - Payments
Unpaid balance = $91.96- $35
Unpaid balance = $56.96
We have given rate of interest= 1.5%=0.015
Finance charge = Finance rate × Unpaid balance
Finance charge =
Finance charge = $0.8544
New balance = Unpaid balance + finance charge + new transaction
New balance = $56.96 +$0.8544+ $113.98
New balance =$171.7944
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