Use of Financial Calculator TI BA-Plus required. Your credit card balance was $900 and you made a $500 payment. What would be the finance charge at 2 percent monthly if your company used the previous balance method?
A)$18
B)$8
C)$10
D)Insufficient information

Question

Quizplus · Accepted Answer

The previous balance method calculates the finance charge based on the balance at the beginning of the billing cycle, which was $900. Therefore, the finance charge is 2% of $900, which is $18.

Use of Financial Calculator TI BA-Plus Required