Question

Calculate the unpaid balance, finance charge, and new balance using the unpaid balance method. Note: interest rate is given as a monthly rate. Previous balance = $179.32 Payments/credits = $85.00 Unpaid balance = $ Monthly rate = 1.25% Finance charge = $ New purchases = $117.42 New balance = $

Answer 1

264.32

3.30

385.04

Explanation:

Answer 2

The new balance will be $385.04.

Explanation:

Previous balance = $179.32

Payments/credits = $85.00

Unpaid balance =
`179.32+85` = $264.32

Monthly rate = 1.25%

Finance charge =
`0.0125*264.32` = $3.30

New purchases = $117.42

New balance =
`264.32+3.30+117.42` = $385.04