The account balance on April 1st is $60.15. On April 15th a payment of $51.00 is made. On April 25th a purchase of $91.27 is made. What is the finance charge if the annual rate is 18%? What is the new account balance?

Question

Finance charge =_______$

New balance =_______$

Answer 1

We find the unpaid balance,

Unpaid balance = Previous balance- Payments= $60.15 - $51
Unpaid balance  = $9.15
We have given rate of interest= 18%=0.18
Now, we find the finance charge
Finance charge = Finance rate × Unpaid balance
Finance charge = $0.13725
New balance =  Unpaid balance + finance charge + new transaction
New balance =  $9.15 +$0.13725+ $91.27
New balance =$100.55

Finance charge = $0.13725

New balance =$100.55

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Answer 2

Thank you so much for trying it said the answer was...

Finance charge = $ 0.90

New balance = $ 101.32