Huey Looz had an unpaid balance of $200 on his credit account last month.This month he charged $100 and made a payment of $20.Using the previous balance method and an APR of 18%,Huey owes $2.70 interest this month.

Question

Quizplus · Accepted Answer

Using the previous balance method, the interest for the month is calculated on the balance from the last statement, which was $200. With an APR of 18%, the monthly interest rate is 1.5% (18% / 12 months). Therefore, the interest for the month is $200 * 1.5% = $3.

Huey Looz Had an Unpaid Balance of $200 on His