The Unpaid Balance in an Account at the Beginning of December

question 29

Multiple Choice

The unpaid balance in an account at the beginning of December was $176. A payment of $55 was made on December 23. The interest rate per month was 1.6% per month of the average daily balance. Find the new balance at the end of December.

• A) $123.56
• B) $122.60
• C) $146.61
• D) $123.50