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 = $291.96 Payments/credits = $45.00 Unpaid balance = $ Monthly rate = 1.5% Finance charge = $ New purchases = $103.98 New balance = $

Answer 1

Previous balance = $291.96

Payments/credits = $45.00

Unpaid balance = $ 291.96 - $45.00 = $ 246.96

Monthly Interest rate = 1.5 %

Finance charge = 1.5 % of $ 246.96= $3.70

Total balance to be paid when Finance charge is included = $ 246.96 + $3.70= $ 250.66

New purchases = $103.98

New balance = $ 250.66 + $103.98 = $ 354.64