After Jasmine makes the minimum payment on her credit card, she owes $687.16 on the account. The monthly interest charge is 2.3% of the unpaid balance. What will be the finance charge on her unpaid balance?

Question

After Jasmine makes the minimum payment on her credit card, she owes $687.16 on the account. The monthly interest charge is 2.3% of the unpaid balance. What will be the finance charge on her unpaid balance?

Answer 1

First, we need to calculate the unpaid balance. To do this, we subtract the minimum payment from the current balance:

$687.16 - minimum payment

We don't know what the minimum payment is, but let's say it's $50 for the sake of example:

$687.16 - $50 = $637.16 (unpaid balance)

Now we can calculate the finance charge:

$637.16 x 0.023 = $14.65

So the finance charge on Jasmine's unpaid balance is $14.65.

Answer 2

The answer is either

A- $19.24
B- $1.92
C- $1.58
D- $15.80

Answer 3

Using the same method as before, we get:

$687.16 - minimum payment = unpaid balance

Let's assume the minimum payment is $25:

$687.16 - $25 = $662.16 (unpaid balance)

Now we can calculate the finance charge:

$662.16 x 0.023 = $15.23

So the finance charge on Jasmine's unpaid balance is $15.23, which is closest to answer choice D. Therefore, the answer is D- $15.80.

Answer 4

To calculate the finance charge on Jasmine's unpaid balance, we need to determine the unpaid balance and then calculate 2.3% of that amount.

Given that Jasmine owes $687.16 on her credit card after making the minimum payment, we can assume that this is the unpaid balance. Therefore, the finance charge would be 2.3% of $687.16.

To calculate this, we use the formula: Finance Charge = Unpaid Balance × Interest Rate

Let's plug in the values:
Finance Charge = $687.16 × 2.3% = $687.16 × 0.023

To find the result, we can multiply $687.16 by 0.023:

Finance Charge = $15.78

Therefore, the finance charge on Jasmine's unpaid balance would be $15.78.