1 answer:
Answer:
The correct answer is:
$1.98
Step-by-step explanation:
we are told that the finance charge is 1.57% on the unpaid balances. so it is calculated as follows:
unpaid balance = $125.89
finance charge = 1.57% of unpaid balance.
note that 1.57% = 1.57/100 = 0.0157
∴ finance charge = 0.0157 × 125.89 = 1.976 = $1.98 ( to 2 decimal places).
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