Homework Help: math

Posted by bean on Sunday, January 15, 2012 at 9:29pm.

Katie had an unpaid balance of $1,734.50 on her credit card statement at the beginning of January. She made a payment of $165.00 during the month. If the interest rate on Katie's credit card was 7% per month on the unpaid balance, find the finance charge and the new balance on February 1. I got 1679.33 but that is not one of the possible answers

math - Steve, Monday, January 16, 2012 at 11:22am
It sounds like you subtracted the $165 payment and then took 7% of the reduced balance.

However, what probably happens is that on the January statement, there was a finance charge of 7% on the $1734.50 unpaid, or $121.42

So, her $165 payment included $121.42 of interest, and only $43.58 of principal.

So, her balance on the next statement is $1690.92

that better?

Answer this Question

Related Questions

math - Katie had an unpaid balance of $1,734.50 on her credit card statement at ...
math - Phil had an unpaid balance of $1,854.50 on his credit card statement at ...
math - Need help with math problem. Tom has an unpaid balance of $2,115.75 on ...
business math - . Jason’s credit card’s beginning unpaid balance for ...
math - john had an unpaid debt of $1,177.79 on a credit card at the beginning of...
math - if john had an unpaid balance of $1,854.80 on his credit card statement ...
Math - I need help with this problem. Jason's credit cards beginning unpaid ...
Math - Aaron had an unpaid balance of $1,177.79 on his credit card statement at ...
Maths - Jason’s credit card’s beginning unpaid balance for August is...
Math - 1. Ling has received been approved for a Visa credit card with a $2000 ...

For Further Reading

First Name:
School Subject:
Answer: