Question

14 Answer:

Tom had an outstanding balance on his credit card account of $861.05.
How much was the finance charge if it was 1.4% per month?

Answer 1

$9.92 per month

Explanation:

A(t) 851.05 x .14^1/12 = 9.92891666667

Rounded to monetary dollars = $9.92

In banks this does get rounded up to £9.93 alternative end year and second year months but not usually the first months.

Answer 2

Around $12.05 or 12.0547