Question

Raymond always pays for gas at the pump with his credit card. His card has an APR of 23.99% and he must pay at least 7% of the balance at the end of each month. If his carry-over balance for gasoline is $106.65, what would his finance charge be at the end of the month?

Answer 1

$2.13

Explanation:

The finance charge is the product of monthly rate and carry-over balance:

(23.99%/12) × $106.65 = $2.13