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Calculate the finance charge and new balance using the previous balance method. Previous balance = $350.55


Annual rate = 18%


Finance charge = $


New purchases = $59.95


Payments/credits = $150.00


New balance = $

Verified Answer :

Aliwohaish12

Finance charge
350.55×(0.18÷12)=5.26
New balance
350.55−150+5.26+59.95=265.76

Answer:

Finance charge = $5.258

New Balance = $265.758

Step-by-step explanation:

By previous balance method,

Finance charge = Previous balance×Periodic percentage rate

Periodic percentage rate = APR/12 = \(\frac{0.18}{12}\)

                                           = 0.015

Finance charge = 350×0.015

                         = $5.258

Also, new balance = Previous balance+New purchases+Finance charge-Payments/credits

New balance = 350.55+459.95+5.258-150

                      = $265.758

                                         

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