Eli has an outstanding balance of $498.16 on his bank credit
card. Find the finance charge for the month if it is calculated at
1.5%.
To find the finance charge, we need to multiply the outstanding balance by the interest rate.
Finance charge = Outstanding balance x Interest rate
Finance charge = $498.16 x 0.015
Finance charge = $7.47
Therefore, the finance charge for the month is $7.47.
To find the finance charge for the month, you need to multiply the outstanding balance by the finance charge rate.
Step 1: Convert the finance charge rate from a percentage to a decimal.
Finance charge rate = 1.5% = 0.015
Step 2: Calculate the finance charge for the month.
Finance charge = Outstanding balance * Finance charge rate
Finance charge = $498.16 * 0.015 = $7.47
Therefore, the finance charge for the month is $7.47.
To calculate the finance charge for Eli's bank credit card, you need to multiply the outstanding balance by the finance charge rate of 1.5%.
Here's how you can calculate it step by step:
Step 1: Convert the finance charge rate to a decimal.
- Finance charge rate = 1.5% = 0.015 (since 1% = 0.01)
Step 2: Calculate the finance charge amount.
- Finance charge = Outstanding balance * Finance charge rate
- Finance charge = $498.16 * 0.015
Step 3: Calculate the final finance charge amount.
- Finance charge = $7.47 (rounded to two decimal places)
Therefore, the finance charge for the month is $7.47.