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Calculate the unpaid balance, finance charge, and new balance using the unpaid balance method.

Note: interest rate is given as a monthly rate.

Previous balance = $410.22

Payments/credits = $160.00

Unpaid balance = $

Monthly rate = 1.25%

Finance charge = $

New purchases = $95.25

New balance = $

1 Answer

4 votes

Answer:

Unpaid balance = $ 250.22

Finance charge = $ 3.13

New balance = $ 348.60

Explanation:

Calculate the unpaid balance, finance charge, and new balance using the unpaid balance method.Note: interest rate is given as a monthly rate.

Previous balance = $410.22

Payments/credits = $160.00

subtract 410-160 to get unpaid balance

Unpaid balance = $ 250.22

Monthly rate = 1.25%

multiply 250 by monthly rate (decimal) .0125 to get finance charge

Finance charge = $ 3.13

New purchases = $95.25

add unpaid balance and finance charge and new purchases to get new balance

New balance = $ 348.60

User Piyush Katariya
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