Question

I need you find out the finance charge for the month ?

Answer 1

We have a account balance for which we calculate a finance charge.

The amount of the finance charge is 1.25% of the balance, so we can calculate the finance charge as:

`\begin{gathered} \text{ Finance charge}=\text{ Balance}\cdot\text{ Rate} \\ \text{ Finance charge}=357.36\cdot(1.25)/(100)=357.36\cdot0.0125=4.467\approx4.47 \end{gathered}`

Answer: the finance charge is $4.47 (Option B).