This preview shows pages 1–2. Sign up to view the full content.
1.
Find the finance charge on an unpaid balance of $1923.81 in a revolving
charge account if the monthly interest rate is 1.8%.
The finance charge is =
34.63
The monthly interest rate is decimal form is 0.018
The interest rate is applied to the outstanding balance of the account.
The
outstanding balance is 1923.81
The amount of interest charged is 1923.81 x 0.018, or $34.63, rounded to the
nearest cent.
2.
Find the finance charge on an unpaid balance of $1471.43 in a revolving
charge account if the monthly interest rate is 1 3/8 %.
The finance charge is
=
$20.23
When calculating with percent’s the decimal form should be used.
The
decimal form of the monthly interest rate is 0.01375.
The amount of interest charge is 1471.43 x 0.01375 = $20.23, rounded to the
nearest cent.
3.
Complete the table to determine the unpaid balances and the finance charges.
The interest rate is 1.5% on the unpaid blance.
Month
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
This is the end of the preview. Sign up
to
access the rest of the document.
This note was uploaded on 05/06/2011 for the course MATH 7 taught by Professor Gill during the Spring '11 term at Coastline Community College.
 Spring '11
 Gill
 Math

Click to edit the document details