Question

jordan amodeo's charge account statement shows a previous balance of $284.86, payments of $100.00, and a finance charge of $3.51. to the nearest hundredth percent, what monthly periodic rate is he being charged?

Answer 1

To find the monthly periodic rate, divide the finance charge by the difference between the previous balance and payments. In this case, the monthly periodic rate is approximately 1.90%

Step-by-step explanation:

To find the monthly periodic rate that Jordan Amodeo is being charged, we can use the formula:

Monthly Periodic Rate = Finance Charge / (Previous Balance - Payments)

Substituting the given values, we get:

Monthly Periodic Rate = 3.51 / (284.86 - 100.00)

Simplifying this expression, we have:

Monthly Periodic Rate = 3.51 / 184.86

Monthly Periodic Rate ≈ 0.01899

= 1.90% (rounded to the nearest hundredth percent)