Less furniture of More charges customers who miss payments o

Less furniture of More charges customers who miss payments on their loans 19.5% of the outstanding balance at the time the payment was due. Our payment was due January 1st and we missed it. Our outstanding balance on that date was $4280.17. If we have not made any additional purchases on or since January 1st, what is our current outstanding balance?

Solution

The outstanding balance on 1st January was $ 4280.17. The payment was missed. Since Less furniture of More charges customers who miss payments on their loans 19.5% of the outstanding balance at the time the payment was due, the overdue penalty is 19.5 %v of $ 4280.17 = $ 834.63. Hence the current outstanding balance is $ 4280.17+ $ 834.63 =$ 5114.80.