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Oxana [17]
3 years ago
5

What is the finance charge?

Mathematics
1 answer:
KengaRu [80]3 years ago
3 0

Answer:

Finance charge = $2.39

Step-by-step explanation:

A finance charge is the cost of borrowing money, including interest and other fees. It can be a percentage of the amount borrowed or a flat fee charged by the company.

In the given question we will calculate the amount of the finance charge

Finance charge= Previous balance×(Annual rate÷12months)

Finance charge=179.32×(16/100÷12months)

Finance charge=179.32×(0.16÷12months)

Finance charge=179.32× 0.0133

=$2.39

New balance= previous balance-payments/credit+finance charge+New purchases

New balance=179.32−85+2.39+117.42

=$214.13

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