Question

Janice had an unpaid balance of $2358.19 on her credit card statement at the beginning of January. She made a payment of $80.00 during the month, and made purchases of $99.50. If the interest rate on Janice's credit card was 4% per month on the unpaid balance, find her finance charge and the new balance on February1.

Answer 1

$2,639.19

Explanation:

Her balance at the end of the month is

$2358.19 - $80.00 + $99.50 = $2537.69

So the finance charge is 2537.69 * 0.04% = $101.50

and her new balance is $101.50 + $2537.69 = $2639.19