One credit card company charges 1.3% per month on any unpaid balance, and a second company charges 1.75%. What is the difference between the finance charges that these two companies assess on an unpaid balance of $647.25? Round your answer to the nearest cent.

Question

Quizplus · Accepted Answer

The difference in finance charges is calculated by finding the difference between the charges by each company on the unpaid balance. For the first company: $647.25 * 0.013 = $8.41425. For the second company: $647.25 * 0.0175 = $11.326875. The difference is $11.326875 - $8.41425 = $2.912625, which rounds to $2.91.

One Credit Card Company Charges 1