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Math Help - revolving credit card.

  1. #1
    Super Member bigwave's Avatar
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    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 423.78 \times \left(\frac{0.15}{12}\right)=($5.30 finance charge)

    then for the new balance.
     423.78+123.42-100= 447.20

     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
    \frac{0.15}{12} to?
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  2. #2
    MHF Contributor
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    Depends on the definition of "unpaid balance method".
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