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 made a payment of 100.00.The store uses the unpaid balance method.According to this information,what must be the amount of the finance charge.Round to nearest cent.
A.5.30
b.5.59
c.6.36
d.6.71

Answer 1

423.78 + 23.42 = 447.20

447.20 * 0.15 = 67.08

67.08 / 12 = ?

Answer 2

Ms. Sue,
Thank you very much,I cannot believe I was leaving off dividing by 12.

According to the information above would Nicks current account balance be 380.12.