Unpaid Balance Method Quiz

What is the Unpaid Balance Method?

• A method to calculate interest on savings

• A method to compute finance charge based on the portion of the previous balance you have not paid

• A method to determine credit score

• A method to calculate monthly expenses

How is the Finance Charge calculated?

• Finance Charge = Unpaid Balance + Periodic Rate

• Finance Charge = Unpaid Balance × Periodic Rate

• Finance Charge = Unpaid Balance - Periodic Rate

• Finance Charge = Unpaid Balance ÷ Periodic Rate

What is the third step in calculating the new balance using the Unpaid Balance Method?

• Calculate the Total Credits

• Calculate the New Balance

• Calculate the Interest Rate

• Calculate the Monthly Income

Which component is added to the Unpaid Balance and Finance Charge to calculate the New Balance?

• Total Credits

• New Purchases

• Interest Rate

• Total Payments

What is Jemma Maker's unpaid balance if her previous balance is $724.59 and payments and credits are $512.35?

• $212.24

• $301.86

• $246.91

• $410.53

What is the new balance for Jemma Maker if her unpaid balance is $212.24, finance charge is $20.69, and new purchases are $223.60?

• $456.53

• $724.13

• $440.67

• $512.24

If the periodic rate is 7.10%, what is the finance charge for an unpaid balance of $246.91?

• $17.53

• $20.69

• $11.74

• $15.00

What is Sanjay Kumar's new balance after new purchases of $678.20?

• $1,423.46

• $1,400.00

• $1,500.00

• $1,350.00

If Silvia Hak's previous balance is $800.75 and she makes payments of $400.00, what is her unpaid balance?

• $400.75

• $450.00

• $350.00

• $500.00

How much is the finance charge for Silvia Hak if her unpaid balance is $400.75?

• $32.66

• $30.00

• $35.00

• $28.00