You owe $449.75 on your credit card. Because you have not paid your bill on time, you have to add a past due charge of $22 , an over limit fee of $45 , and a service charge of 11% of the amount owed on the credit card (without the past due charge and over limit fees). If you wish to send a check for the full amount immediately, how much should you write the check for? Round your answer to the nearest cent, if necessary.

1 answer

To find out how much to write the check for, we need to calculate the total amount owed on the credit card, including all the fees.

First, let's calculate the service charge. The service charge is 11% of the amount owed on the credit card, without the past due charge and over limit fees.

The amount owed on the credit card (without fees) is $449.75 - $22 - $45 = $382.75.

So, the service charge is 11% of $382.75:

Service charge = 11% * $382.75 = $42.10.

Now, let's calculate the total amount owed on the credit card, including all the fees:

Total amount owed = Amount owed on the credit card + Past due charge + Over limit fee + Service charge
Total amount owed = $449.75 + $22 + $45 + $42.10
Total amount owed = $559.85.

The check should be written for $559.85.