The unpaid balance in an account at the beginning of December was $176. A payment of $55 was made on December 23. The interest rate per month was 1.6% per month of the average daily balance. Find the new balance at the end of December.

Question

Quizplus · Accepted Answer

The average daily balance is (176 + 121) / 2 = 148.5. The interest for December is 148.5 * 0.016 = 2.38. The new balance is 176 + 2.38 - 55 = 123.56.

The Unpaid Balance in an Account at the Beginning of December