Question

The unpaid balance on a MasterCard charge was $1,056.23. During the month, payments of $300 and $250 were made and charges of $425 and $274.16 were added. If the finance charge is 1.2% per month on the unpaid balance, find the new balance at the end of the month.

$1,205.39




$1,218.06




$918.06




$1,768.06

Answer 1

1218.06

Explanation:

first multiply by the finance fees on unpaid balance :

1056.23*(1.2%)=12.674

then add the extra charges:

1056.23+12.674=1068.9

add the charges to the unpaid balance :

1068.9+425+274.16=1768.064

then subtract the payments: 1768.064-550 =1218.064