posted by kk on .
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
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)