Question

Sharon previous balance on her credit card is 2000 monthly rate is 1.8 she made purchases of 185, 107, 56, money payment of 550 using unpaid balance method what’s the balance at the end of the month

Answer 1

To calculate the balance at the end of the month using the unpaid balance method, calculate the interest on the previous balance, add it to the previous balance, and then subtract any payments made.

Step-by-step explanation:

To calculate the balance at the end of the month using the unpaid balance method, we need to calculate the interest on the previous balance and subtract any payments made.

Step 1: Calculate the interest on the previous balance (2000) using the monthly rate (1.8%).
Interest = previous balance * monthly rate = 2000 * 0.018 = 36

Step 2: Add the interest to the previous balance.
New balance = previous balance + interest = 2000 + 36 = 2036

Step 3: Subtract any payments made (550).
Balance at the end of the month = new balance - payments = 2036 - 550 = 1486

Therefore, the balance at the end of the month is $1486.