Question

Math, multiple choice! I will give 10 points! Need help ASAP!

Kerry's credit card statement showed these items:

Last balance-$98.32, payments-$30, finance rate-1.5%, new charges-$58.28

What is the finance charge on the unpaid balance?

1. $1.02
2.$1.92
3.$1.90
4.$2.53

Answer 1

Given:
Last balance-$98.32
payments-$30,
finance rate-1.5%
new charges-$58.28

98.32 - 30 = 68.32
68.32 * 1.5% = 1.0248

The finance charge on the unpaid balance is $1.02

Only the remaining balance of the last balance shall be subjected to finance charge. The finance charge will be added to the balance that will be paid next due date. In the event that partial payment will still be made, the remaining balance will still be subjected to finance charge.

Answer 2

Option 1 - $1.02

Explanation:

Given : Last balance-$98.32, payments-$30, finance rate-1.5%, new charges-$58.28

To find : What is the finance charge on the unpaid balance

Solution : Last balance = $98.32

Payments = $30

Unpaid balance = Last balance - Payments

= $98.32 - $30

= $68.32

Finance charge on the unpaid balance = Finance rate × Unpaid balance

Finance charge
`=(1.5)/(100)* 68.32 = 1.02`

Therefore, Option 1 is correct. The finance charge on the unpaid balance is $1.02.