Phil had an unpaid balance of $2,084.50 on his credit card statement at the beginning of December.
He made a payment of $385.00 during the month. If the interest rate on Phil's credit card was 1.5%
Per month on the unpaid balance, find the finance charge and the new balance on January 1.
A)Finance charge = $31.27; new balance = $1,730.77
B)Finance charge = $41.41; new balance = $1,740.91
C)Finance charge = $35.38; new balance = $1,734.88
D)Finance charge = $29.38; new balance = $1,728.88

Question

Quizplus · Accepted Answer

The correct answer is A because the finance charge is $31.27 and the new balance is $1,730.77. The finance charge is calculated by multiplying the unpaid balance by the interest rate. The new balance is calculated by adding the finance charge to the unpaid balance.

Phil Had an Unpaid Balance of $2,084