Calculating Finance Charge for Unpaid Balance

Select the equation that represents the finance charge for a credit card that compounds monthly and has an unpaid balance of $1200, and a 12% APR for 10 months. Assume there are no payments and purchases.

You have an unpaid balance of $500. Name at least two different reasons your balance would increase.

Tags

CCSS.7.NS.A.1A

• 2 years

• 2 months

• 2 weeks

• 2 days

Find the unpaid balance if the periodic rate is 1.75% and the finance (interest) charge equals $6.00.

Round answer to the whole cent.

Tags

CCSS.7.RP.A.3

If Terence has a balance of $439.50 on a credit card that charges a finance charge computed at 3.5%, what is the new balance? Round your answer to the nearest cent.

• $455.35

• $443.00

• $454.88

• $424.12

Tags

CCSS.7.RP.A.3

I opened a new credit card to purchase a pair of jeans for $75.00. I made a minimum payment of 2% of the balance. What is the unpaid balance? If finance charges are based on an APR of 18% and compounded monthly, what is the new balance?

• unpaid balance =

  $73

  new balance = $74.10

• unpaid balance =

  $74.88

  new balance =

  $76.00

• unpaid balance =

  $74.50

  new balance =

  $84.53

• unpaid balance = $73.50

  new balance =

  $74.60

Tags

CCSS.HSF.BF.A.2

A card that authorizes purchases on credit is called a(n) ________________.

• charge account

• credit card

• debit card

• finance charge

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

A(n) ___________________ is interest that the company charges to a credit account for not paying the total amount owed by the due date.

• finance charge

• credit card

• charge account

• unpaid-balance

Tags

CCSS.7.RP.A.3

The current balance is $306.55 on your credit card. You then make a purchase of $209.54 followed by a payment of $175.00. If the finance charge is $6.75, what is your new balance?

• $347.84

• $492.09

• $571.37

• $306.55

Tags

CCSS.7.NS.A.3

Denise has a credit account with an unpaid balance of $210.94. If the company charges a 1.85% finance charge, what will the finance charge be?

• $3.90

• $4.28

• $5.28

• $6.09

Tags

CCSS.7.RP.A.3