Question

Roderick's credit card company calculates a finance charge based upon a periodic rate of 1.2% on all unpaid balances. If Roderick has an unpaid balance of $200, determine the finance charge that he will be assessed. $301.80 $298.20 $2.40 $54.00

Answer 1

$2.40

Explanation:

You have ...

finance charge = 1.2% × unpaid balance

= 0.012 × $200 . . . . . fill in the value of unpaid balance

finance charge = $2.40