Question

My dog got hurt and needed surgery,so I had to use my credit card to pay the vet bill. His surgery costed me $5,323.21. If my monthly interest rate is 1.42%, how much is my finance charge for the first billing cycle?

Answer 1

Answer:

$75.59.

Explanation:

• Cost of the surgery = $5,323.21

,

• Monthly interest rate = 1.42%

A finance charge is a fee charged for the use of a credit card. A billing cycle is usually between 28 to 31 days, i.e. a month.

To find the finance charge, multiply the interest rate by the cost of surgery.

$\begin{gathered} \text{Fnance Charge}=1.42\%\text{ of \ }5,323.21 \\ =\frac{1.42}{100}\times5,323.21 \\ =\ 75.59 \end{gathered}$

The finance charge for the first billing cycle is $75.59.