To calculate the monthly finance charge on Fred's balance, we need to multiply the unpaid balance by the finance charge rate.
Finance charge = Balance x Finance charge rate
Finance charge = $215.78 x 0.018
Finance charge = $3.88404
Therefore, the monthly finance charge on Fred's balance is approximately $3.88.
Fred has a balance of $215.78 on his department store charge account.
The finance charge is 1.8% on the unpaid balance per month. How much is
the monthly finance charge on his balance?
1 answer