Question

The average daily balance of a credit card for the month of November was $700, and the unpaid balance at the end of the month was $1400. If the monthly interest rate is 1.3% of the average daily balance, what is the total balance on the next billing date December 1? Round your answer to the nearest cent. Do not use commas to separate numbers or dollar signs. For example, $5,678.00 should be entered as 5678.00.

Answer 1

9514 1404 393

Answer:

$1409.10

Explanation:

The interest is added to the unpaid balance to obtain the total balance.

$700×1.3% + 1400 = $9.10 +1400 = $1409.10