Question

nick has a revolving department store credit card account with an annual percentage rate of 15% last month's balance on the account was $423.78
during the current month he made purchases totaling $123.42 and he made a payment of $100.00 the store uses the unpaid balance method. According to this info what must be the amount of the finance charge ? answer needs to be rounded to the nearest cent

Answer 1

The unpaid balance of the previous bill was $323.78. 15% annual interest on that amount results in a current-month finance charge of $4.05.

Answer 2

thanks for the help I am still not quite sure the choices I have to pick from are

$5.30 $6.36

$5.59 $ 6.71

The previous blance $323.78 15% annual interest finance charge would be $4.05

need to round answer to the nearest cent