Chaundra has a credit card with a monthly rate of 1.3% .The account applies the unpaid balance method. Her unpaid balance for the June billing cycle is $704.42. During the month of June, she made purchases of $452.61, returned items worth $17.69 and made a payment of $105. Find her new balance.

Question

Quizplus · Accepted Answer

The new balance is calculated by first adding the interest to the unpaid balance, then adding new purchases, subtracting returns, and subtracting any payments made. Interest for the month is 1.3% of $704.42, which is $9.16. So, the calculation is $704.42 (unpaid balance) + $9.16 (interest) + $452.61 (purchases) - $17.69 (returns) - $105 (payment) = $1043.50.

Chaundra Has a Credit Card with a Monthly Rate of 1.3