Question

franks credit card statement shows a balance of \\$1165.25 on the first day of the billing cycle. if he makes a payment of \\$541.86 and charges \\$381.42 during this billing period, what will his finance charge be (the interest rate is 1.65\\% of the unpaid balance per month)? what will his beginning balance be at the start of the next billing cycle? round the answers to the nearest cent.

part 1 of 2
the finance charge is \\$ \box.

part 2 of 2
at the start of the next billing cycle the beginning balance will be \\$ \box.

Explanation:

Calculate the unpaid balance

Using the Finance Charge knowledge point

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Calculate the finance charge

Using the Finance Charge knowledge point

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Calculate the new beginning balance

We calculate the beginning balance for the next billing cycle by adding the finance charge and new charges to the unpaid balance.

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Answer:

Question 1

The finance charge is $<blank>10.29</blank>.

Question 2

At the start of the next billing cycle the beginning balance will be $<blank>1015.10</blank>.