
revolving credit card.
the card has an annual percentage rate of 15%
last months balance on the card was $423.78. During the month purchases totaled $123.43. a payment of $100 was paid.
using the "unpaid balance method" what is the finance charge and what will be the the current balance.
well for the finace charge I used the last month's balance of $\displaystyle 423.78 \times \left(\frac{0.15}{12}\right)=($5.30 finance charge)$
then for the new balance.
$\displaystyle 423.78+123.42100= 447.20$
$\displaystyle 447.20 + 5.30 = ($452.50 current balance)$
this is one of the multiple choices but wasn't sure just what balance you apply the
$\displaystyle \frac{0.15}{12}$ to?

Depends on the definition of "unpaid balance method".