Question

Tom Sullivan's charge account statement shows an unpaid balance of $1,329.08. The monthly finance charge is 2.5% of the unpaid balance. What is the new account balance?

Answer 1

$1362.307

Explanation:

We are given that

Tom have unpaid balance=$1329.08

Finance charge=2.5% of unpaid balance

We have to find the new account balance.

Finance charge=
`(2.5)/(100)* 1329.08`

Finance charge=$33.227

Now,

The new account balance=Unpaid balance +finance charge

The new account balance=$1329.08+$33.227

The new account balance=$1362.307