The APR for Renee's charge account at Super Mart is 21%. Using the previous balance method, what are the finance charges on Renee's previous balance of $645.32?

Question

Quizplus · Accepted Answer

The finance charge can be calculated by multiplying the APR (21%) by the previous balance ($645.32) and then dividing by 12 (to get the monthly rate). So, $645.32 \times 0.21 = 135.51$, and then $135.51 / 12 \approx 11.29$.

The APR for Renee's Charge Account at Super Mart Is