Question

A credit card company charges a customer 1.2% per month on the unpaid balance of charges on the card. What is the finance charge in a month in which the customer has an unpaid balanceof $374.95.

Answer 1

374.95/x=100/1.2

(374.95/x)*x=(100/1.2)*x - we multiply both sides of the equation by x

374.95=83.333333333333*x - we divide both sides of the equation by (83.333333333333) to get x

374.95/83.333333333333=x

4.4994=x

x=4.4994

now we have:

1.2% of 374.95=4.4994

Answer 2

Given:

Finance Charge per month on unpaid balance = 1.2%

Unpaid balance in a month = $374.95

To find the finance charge in month where the unpaid balance is 374.95, we have:

`\begin{gathered} 1.2\text{ \% of 374.95} \\ \\ =\text{ }(1.2)/(100)*374.95 \\ \\ =0.012*374.95=4.4994 \end{gathered}`

Therefore, the finance charge in a month in which the customer has an unpaid balance of $374.95 is approximately $4.50

ANSWER:

$4.50