Mindy's credit card has an APR of 15%, calculated on the previous monthly
balance, and Mindy makes a payment of $50 every month. Her credit card
record for the last 7 months is shown in the table below.
End of
month
234567
3
Previous
balance
$0.00
$45.00
$188.56
$230.92
$260.81
$252.07
$432.22
New
charges
$45.00
$193.00
$90.00
$77.00
$38.00
$227.00
$88.00
Payment
received
$0.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
Finance
charges
$0.00
?
$2.36
$2.89
$3.26
$3.15
$5.40
What were the finance charges in month 2?
Principal
paid
$0.00
$49.44
$47.64
$47.11
$46.74
$46.85
$44.60
New
balance
$45.00
$188.56
$230.92
$260 81
$252.07
$432.22
$475.62