Question

Larry Thomas's charge account statement shows an unpaid balance of $800. The monthly finance charge is 1.5% of the unpaid balance. What is the new account balance? Answer key

Answer 1

The new account balance is $812.

Explanation:

Given:

Larry Thomas's charge account statement shows an unpaid balance of $800.

The monthly finance charge is 1.5% of the unpaid balance.

Now, to find the new account balance.

Unpaid balance = $800.

Monthly finance charge of the unpaid balance = 1.5%.

Now, to get the new account balance:

$800 + 1.5% of $800.

`=800+(1.5)/(100) * 800.`

`=800+0.015* 800.`

`=800+12.`

`=\$812.`

Therefore, the new account balance is $812.