If the manufacturer from the question above charges a 4½% late fee, how much would City Cellular owe if it did not pay the balance by the net date?
To calculate the amount City Cellular would owe if it did not pay the balance by the net date, we need to find the late fee.
The late fee is calculated as a percentage of the balance. In this case, the late fee is 4½% of the balance.
To find the late fee amount, follow these steps:
Step 1: Convert the percentage to a decimal.
To convert 4½% to a decimal, divide it by 100:
4.5 ÷ 100 = 0.045
Step 2: Calculate the late fee amount.
Multiply the balance by the late fee rate:
Late Fee = Balance * Late Fee Rate
Late Fee = Balance * 0.045
So, if City Cellular didn't pay the balance by the net date, the amount it would owe as a late fee would be 4.5% of the balance.