Using the unpaid balance method find the current months fina

Using the unpaid balance? method, find the current? month\'s finance charge on a credit card account having the following transactions.

Last? month\'s balance: ?$785 ???

Last? payment: ?$130 ???

Annual Interest? rate: 21 ?% ???

Purchases:???$301 ???

Returns: ?$832

The finance charge is ?$

Solution

LAst month balance = 785
Finance charge = 785*0.21/12=13.74

This month balance = 785+13.74-130+301=969.74
Return = 832
Total balance = 137.74
Finance charge = 137.74*.21/12=$2.41