Steve charged a $469 purchase on his credit card. The first month he
paid $175. The second month's statement included a 1.6% monthly finance
charge, computed on the unpaid balance method. What was the total amount
due on the second statement?
a. $298.70
b. $476.50
c. $4.70
d. $294
The unpaid balance after the first month is $469 - $175 = $294.
The finance charge for the second month is 1.6% of $294 = $4.70.
Therefore, the total amount due on the second statement is $294 (unpaid balance) + $4.70 (finance charge) = $298.70.
The answer is a. $298.70.