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3 years ago

14

Blake Ewasko's charge account uses the unpaid balance method to compute the finance

1 answer:

aev [14]3 years ago

7 0

Answer:

$1,114.66

Step-by-step explanation:

Data provided in the question:

Monthly periodic rate = 2.15% = 0.0215

current Charges = $189.34

Payment made = $100.00

Finance charge = $21.54

Now,

Previous balance = Finance charges ÷ Rate

= $21.54 ÷ 0.0215

= $1001.86

Unpaid balance = Previous balance + Current charges - Payment

= $1001.86 + $189.34 - $100.00

= $1091.2

New balance = Unpaid balance × ( 1 + Rate )

= $1091.2 × ( 1 + 0.0215)

= $1,114.66

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