Answer:
Previous monthly balance = $654.19
Interest charge = $464.61
Step-by-step explanation:
Given : The table of 7 months. Francisco's credit card has an APR of 28.98%.
To find : What will Francisco be charged for interest for month 8 and calculated on the previous monthly balance.
Solution :
New balance of 7th month is equal to the previous monthly balance. of 8th month.
So, we have to find the new balance of 7 month
New balance = Unpaid balance + finance charge + new transaction
From the table, the 7 month information is
Previous balance = $325.27
payment received = $22.94
Finance charge = $7.86
New charges = $344
Unpaid balance = Previous balance - Payment
= $325.27 - $22.94
Unpaid balance = $302.33
New balance = Unpaid balance + finance charge + new transaction
New balance = $302.33 + $7.86 + $344
New balance = $654.19
Previous monthly balance of 8th months is $654.19
Interest rate of 8th month is 28.98%
[tex]654.19\times\frac{28.98}{100}=189.58[/tex]
Interest for month 8 previous balance is
[tex]I=654.19-189.58\\I=\$464.61[/tex]
