Question

Alexandra Romar has a previous balance at Porter Pharmacy of $68.42. She had payments and credits of $18.25. The monthly finance charge is 1.85% of the unpaid balance. After the finance charge was calculated, she made $34.00 in new purchases. What is her new balance?

Answer 1

Unpaid balance
68.42−18.25=50.17

Finance charge
50.17×(0.0185)=0.92

New balance
68.42−18.25+0.93+34=85.1

Answer 2

Her new balance is $85.10.

Explanation:

Alexandra Romar has a previous balance at Porter Pharmacy = $68.42

She had payments and credits = $18.25

Now the unpaid balance = 68.42 - 18.25 = $50.17

The monthly finance charge on unpaid balance = 1.85% × 50.17

=
`(1.85)/(100)` × 50.17

= 0.928145 ≈ $0.93

So the balance with finance charge = 50.17 + 0.93 = 51.10

She made a new purchase = $34.00

Her new balance = 51.10 + 34.00 = $85.10

Her new balance is $85.10.