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 = $283.63
Payments/credits = $60.00

Unpaid balance = $ a. 343.63 b. 223.63

Monthly rate = 1.5%

Finance charge = $ a. 3.35 b. 4.25
New purchases = $51.36
New balance = $ a. 278.34 b. 223.63 c. 3.35

Answer 1

Unpaid balance 283.63-60=223.63
Finance charge
223.63*(0.015/12)=3.35
New balance
223.63+3.35+51.36==278.34