Answer:
The finance charge for this month is $162.06
Step-by-step explanation:
Hi
First of all, as we have the interest rate of a year [tex]i_{y}=28.39\%[/tex], but we need the monthly rate of interest, so [tex]i_{m}=\frac{i_{y}}{12}=\frac{28.39\%}{12} =2.36\%=0.0236[/tex].
Then we can compute how much is the finance charge for this month, hence [tex]I=\$ 6,850(0.0236)=\$ 162.06[/tex]
Answer: $162.05 is the finance charge for this month
Step-by-step explanation:
Hi, to answer this question, first, we have to divide the annual rate ( 28.39%) by 12, since a year has 12 months , and we want to calculate the charge for this month.
28.39% / 12 = 2.36% is the monthly rate =0.0236 (in decimal form, 2.36/100=0.0236)
Now, we have to multiply the monthly rate by the amount of the balance:
6,850 x 0.0236 =$162.05 is the finance charge for this month
Feel free to ask for more if needed or if you did not understand something.
