The monthly finance charge can be calculated by multiplying the unpaid balance by the monthly interest rate (1.6% or 0.016).
Finance charge = $242.68 x 0.016 = $3.88
Therefore, the answer is option a. $3.88.
Anson has a balance of $242.68 on his department store charge account.
The finance charge is 1.6% on the unpaid balance per month. How much is
the monthly finance charge on his balance?
a. $3.88
b. $.36
c. $43.68
d. $3.59
1 answer
1 answer