Question

Denise Robb's account statement shows a $210.94 unpaid balance. With a periodic rate of 1.85%, what is the finance charge? She had new purchases of $341.22. What is the new balance?

Answer 1

A) 3.9 dollars

B) 126.38 dollars

Explanation:

Given that Denise Robb's account statement shows a $210.94 unpaid balance. With a periodic rate of 1.85%

The finance charge = 1.85/100 × 210.94 = 3.9 dollars

If She had new purchases of $341.22. The new balance will be

341.22 - ( 210.94 + 3.9 )

126.38 dollars