Question

7. Ana Melendez's credit card statement lists a previous balance of $759.86, new purchases and fees of $420.78, and payments and credits of $450. Ana's card company charges an APR of 14% on the adjusted balance. a. What is Ana's finance charge? b. Find Ana's new balance.

Answer 1

a. $759.86 + $420.78 - $450

= $730.64

Daily periodic rate = APR / 365

= 0.14 / 365

= 0.0003836

Finance charge = $730.64 x 0.0003836 x 30

= $8.38

b. 730.64 + $8.38

= $739.02