Find the finance charge on the revolving charge account. Assume interest is calculated on the unpaid balance of the account. Round to the nearest cent.
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Question

Quizplus · Accepted Answer

To find the finance charge, we need to multiply the interest rate by the unpaid balance. In this case, the interest rate is 1.5% and the unpaid balance is $322.93.

1.5% of $322.93 = $4.84395 which rounds to $4.84 (to the nearest cent).

Therefore, the finance charge on the revolving charge account is $4.84. To find the finance charge, we need to multiply the unpaid balance ($322.00) by the interest rate (1.5% or 0.015) and the number of days in the billing cycle (30), and then round to the nearest cent.

Finance Charge = Unpaid Balance x Interest Rate x Number of Days 
Finance Charge = $322.00 x 0.015 x 30 
Finance Charge = $14.49

Rounding to the nearest cent gives us $14.48. Therefore, the finance charge on the revolving charge account is $14.48, which rounds to $4.84. Choice B is the correct answer.

Find the Finance Charge on the Revolving Charge Account