Question

Calculate the unpaid balance, finance charge, and new balance using the unpaid balance method. Note: interest rate is given as a monthly rate. Previous balance = $179.32 Payments/credits = $85.00 Unpaid balance = $ Monthly rate = 1.25% Finance charge = $ New purchases = $117.42 New balance = $

Answer 1

Answer:

The new balance will be $385.04.

Step-by-step explanation:

Previous balance = $179.32

Payments/credits = $85.00

Unpaid balance = $179.32+85$ = $264.32

Monthly rate = 1.25%

Finance charge = $0.0125\times264.32$ = $3.30

New purchases = $117.42

New balance = $264.32+3.30+117.42$ = $385.04