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just olya [345]
4 years ago
5

Calculate the finance charge and new balance using the previous balance method. Previous balance = $199.19 Annual rate = 14%

Mathematics
1 answer:
brilliants [131]4 years ago
3 0

Answer:

Finance charge =  $2.32

new balance = $201.51

Step-by-step explanation:

Finance charge = Previous balance×Periodic percentage rate

The previous balance is 199.19

The annual percentage rate is 0.14. Therefore, the periodic percentage rate is; (0.14/12)

Finance charge = 199.19 * (0.14/12)

                           = 2.3239 = $2.32

new balance = previous balance + finance charge

                      = 199.19 + 2.32

                      = $201.51

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