Use the unpaid balance method to find the finance charge on

Use the unpaid balance method to find the finance charge on the credit card account. Last? month\'s balance, the? payment, the annual interest? rate, and any other transactions are given.

Last? month\'s balance, ?$410

?Payment, ?$260

Interest? rate, 18.1?%

Bought plane? ticket, ?$100

Bought? luggage, ?$120

Paid hotel? bill, ?$185

The finance charge is ?$

?(Round to the nearest cent as? needed.)

Evaluation 1 Systems, Matrices, Finance This Test: 32 pts are given Last

Solution

Last Month Balance $ 410.00 Payment $ 260.00 Interest Rate 18.10% Yearly Purchases Bought Plain Ticket $ 100.00 Bought Luggage $ 120.00 Paid Hotel Bill $ 185.00 Total Purchases $ 405.00 Finance Charge on last month balance Finance Charge ($410*18.10%*1/12) $       6.18 Finance Charge of this month Previous month balance $ 410.00 Add:Finance charge $       6.18 Add:Purchases $ 405.00 Less: Payments $ 260.00 Balance $ 561.18 Finance Charge ($561.18*18.10*1/12) $       8.46