Question

Joel purchased an engagement ring with his credit card. His card has an APR of

13.99% and he must pay at least 3% of the balance at the end of each month. If

his carry-over balance for this month is $9,026.74 and he has made no

additional purchases, what would Joel's finance charge be at the end of the

month?

Round your answer to the nearest cent.

Answer 1

33.19

Explanation:

$2846.89

$2846.89 * (.1399/12) = 33.189992583333333333333333333333

Finance Charge is $33.19

Answer 2

What is your definition of finance charge?

the interest is $105.24

3% of what he owes (the minimum) is $273.96

Explanation:

$9,026.74

+9,026.74 * (.1399/12) = $105.2367438

($9,026.74 + $105.24)*(.03) = $273.96