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

Algebra ->  Finance -> 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      Log On


   

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) About Me  (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