if john had an unpaid balance of $1,854.80 on his credit card statement at the beginning of the month and he made a payment of $45.00. If the interest rate of john's card wasw 2.5% on the unpaid balance per month. find the finance charge and the new balance on the first of the next month.

thanks...please help...I am in deep
water.....kk

2.5% of 1854.8 = 46.37

This is more than his payment of $45 , so his balance will actually increase by $1.37

His new balance will be $1856.17

(John will probably get a phone-call from the bank)

To find the finance charge and the new balance on John's credit card statement, we need to calculate the interest on the unpaid balance and add it to the remaining balance after the payment.

1. Calculate the interest on the unpaid balance:
- Convert the annual interest rate to a monthly rate by dividing it by 12 (months). In this case, the monthly interest rate is 2.5% divided by 100 (= 0.025).
- Multiply the monthly interest rate by the unpaid balance to find the finance charge:
Finance charge = 0.025 * $1,854.80

2. Calculate the remaining balance after the payment:
- Subtract the payment amount from the unpaid balance:
Remaining balance = $1,854.80 - $45.00

3. Calculate the new balance:
- Add the remaining balance and the finance charge:
New balance = Remaining balance + Finance charge

Now let's calculate the finance charge and the new balance:

1. Calculate the finance charge:
Finance charge = 0.025 * $1,854.80

Let's calculate it:
Finance charge = $46.37

2. Calculate the remaining balance:
Remaining balance = $1,854.80 - $45.00

Let's calculate it:
Remaining balance = $1,809.80

3. Calculate the new balance:
New balance = Remaining balance + Finance charge

Let's calculate it:
New balance = $1,809.80 + $46.37

The new balance on the first of the next month is $1,856.17. This includes both the remaining balance from the previous month and the finance charge, which is the interest on the unpaid balance.