SOLUTION: Arnold Brown has a Visa Card with an annual percentage rate of 19.2%. The unpaid balance for his June billing cycle is $1,376.64. During the billing cycle,​ he purchased a printe
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Question 1135817: Arnold Brown has a Visa Card with an annual percentage rate of 19.2%. The unpaid balance for his June billing cycle is $1,376.64. During the billing cycle,​ he purchased a printer cartridge for ​$47.35​, books for ​$298.56 and gasoline for ​$16.05. He made a payment of ​$1,200. If the account applies the unpaid balance​ method, what are the finance charge and the new​ balance?
​(Round to the nearest cent as​ needed.)
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
here's a reference on the unpaid balance method.
http://www.solving-math-problems.com/credit-card-unpaid-balance-method.html
in your problem:
monthly interest rate = 19.2 / 12 = 1.6%
unpaid balance is 1376.64.
additional purchase are 47.35 for a printer cartridge plus 298.56 for books plus 16.05 for gasoline.
he made a payment of 1200.
his finance charge for the month is on the unpaid balance for the previous month.
.016 * 1376.64 equals finance charge of 22.03.
his new balance at the end of the current month will be:
1376.64 + 47.35 for a printer cartridge + 298.56 for books + 16.05 for gasoline - payment of 1200 + finance charge of 22.03 = 560.63
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