The monthly interest on the unpaid balance from November is $13.16
How to determine the monthly interest on the unpaid balance
From the question, we have the following parameters that can be used in our computation:
The table of values
To calculate the monthly interest on the unpaid balance from November, we use
Interest = Unpaid Balance × Monthly Interest Rate
Where
Monthly Interest Rate = = 1.79% = 1.79/100
Unpaid balance = $735.20
Substitute the known values into the equation
Interest = $735.20 × (1.79/100)
Evaluate
Interest = $13.16
Hence, the monthly interest on the unpaid balance is $13.16
Question
Transaction types Amount
Unpaid balance from November (Beginning balance on December 1) $735.20
Purchases made during the month of December $285.45
Payments made during the month of December $85.43
Suppose the credit card company charges 1.79% monthly interest on the unpaid balance from November. How much interest will this be?