Amy had an unpaid balance of $811.75 on her credit card statement at the beginning of September. She made a payment of $45.00 during the month. If the interest rate on Amy's credit card was 10.5% per month on the unpaid balance, find the finance charge and the new balance on October 1.

Question

Quizplus · Accepted Answer

The correct answer is A. The finance charge is calculated as 10.5% of the unpaid balance, which is $811.75 - $45.00 = $766.75. The finance charge is therefore $766.75 * 0.105 = $80.51. The new balance is the unpaid balance plus the finance charge, which is $766.75 + $80.51 = $847.26.

Amy Had an Unpaid Balance of $811