Ask Question
29 October, 21:25

For the month of July, the unpaid balance on Sue's credit card statement was $1,131.63 at the beginning of the billing cycle. She made purchases of $512.58. She also made a payment of $750.00 during the month. If the interest rate was 1.75% per month on the unpaid balance, determine the finance charge and the new balance on the first day of the August billing cycle.

+3
Answers (1)
  1. 30 October, 01:19
    0
    The finance charge is $19.80 and The new balance on the first day of the August billing cycle is $914.01

    Explanation:

    According to the given data, we have the following:

    Sue's credit card statement was $1,131.63 at the beginning of the billing cycle

    purchases = $512.58

    interest rate=1.75%

    Hence, to determine the finance charge we use the equation I=Ptr,

    so = ($1,131.63) (1) (0.0175)

    =$19.80.

    The finance charge is $19.80

    Then, She also made a payment of $750.00 during the month, so In order to calculate the new balance on the first day of the August billing cycle we would have to make the following calculation

    new balance=old unpaid balance+finance charge+purchases-payment

    =$1,131.63+$19.80+$512.58-$750.00

    =$914.01

    The new balance on the first day of the August billing cycle is $914.01
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “For the month of July, the unpaid balance on Sue's credit card statement was $1,131.63 at the beginning of the billing cycle. She made ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers