Question

Find the finance charge from the following:

Balance of $5186.59

APR of 19.99%

Answer 1

To calculate the yearly finance charge on a balance of $5186.59 with a 19.99% APR, convert the APR to decimal form and multiply it by the balance. The yearly finance charge would be approximately $1037.42.

Step-by-step explanation:

To find the finance charge on a balance of $5186.59 with an annual percentage rate (APR) of 19.99%, you would typically need to know the length of the billing cycle. However, if we assume the charge is for a one-year period, the calculation is relatively straightforward:

1. First, convert the APR from a percentage to a decimal by dividing by 100: 19.99% ÷ 100 = 0.1999.
2. Multiply the balance by the decimal APR to find the yearly finance charge: $5186.59 × 0.1999.
3. Calculate the result of the multiplication to find the finance charge: $5186.59 × 0.1999 = $1037.42 (approx).

So, the finance charge for one year would be approximately $1037.42.