Answer:
1. New balance on July 1=1,484.962
2. New finance charge=97.1362
Step-by-step explanation:
The initial unpaid balance=1753.05 by June
Amy paid 365.39 on June
The unpaid balance after paying 365.39=Initial unpaid balance-amount paid on June
where;
Initial unpaid balance=1753.05
Amount paid on June=365.39
replacing;
The unpaid balance after paying 365.39=(1753.05-365.39)
The unpaid balance after paying 365.39 =1,387.66
The interest will be charged on the unpaid balance of 1,387.66
Interest=Principal×rate×time
Principal=1,387.66
Rate=7% per month
Time(in months)=Early June to early July=1 month
replacing;
Interest=1,387.66×(7/100)×1=97.1362
New balance on July 1=Unpaid balance after paying+Interest
where;
Unpaid balance after paying=1,387.66
Interest=97.1362
replacing;
New balance on July 1=(1,387.66+97.1362)=1,484.962
New balance on July 1=1,484.962
New finance charge=97.1362
