posted by Anonymous on .
Question 12.12. 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.
7% per month ????
in the middle ages , they would burn folks on the stake for rates like that. It was called usury.
interest on balance = .07(1734.50) = $121.42
actual repayment from loan
= 165-121.42 = $43.59
Balance next month = 1734.50 - 43.59
= $ 1690.92