Question

Candida has a revolvine credit account at an annual percentage rate of 24% Her previous monthly balance is $549.79 Find the new balance using the previous month's balance method of Candida's account

showed the followme activity. Payment, $143 10. Country Lumber (charge), $230.18, Zahir Antiques (credit) $398 OS: Mountain Vineyards (charge), 20494, Bart's Garage (charge).​

Answer 1

$668.77

Explanation:

Periodic Rate = APR / 12

Periodic Rate = 24% / 12 = 2%

Finance charge = Previous balance × Periodic rate

Finance charge = 549.79 × .02 = 10.9958

(Add charges and finance charge, subtract payments and credits)

New Balance = $549.79 + 10.9958 - $143.30 + 230.18 - 398.05 + 204.94 + 214.21 = $668.7658 ~ $668.77