Question

The previous statement for your credit card had a balance of $530. You make purchases of $160 and make a payment of $60. The credit card has an APR of 22%. What is the finance charge for this month? (Round your answer to the nearest cent.)

Answer 1

Finance charge = APR /12 x ( Previous balance - Payments + Purchases)

Replacing with the values given:

Finance Charge = 0.22/12 x (530 - 60 + 160 )

Finance Charge = $11.55