Solve the Problem The Interest Rate on the Card Is 1

question 176

Multiple Choice

Solve the problem.
-On the January 2 billing date, Dano had a balance due of $1241.37 on his credit card. The Transactions during the following month were: $\begin{array}{lll}\text { January } 5 & \text { Charge: prescriptions } & \$ 82.82 \\\text { January } 6 & \text { Payment } & \$ 605.46 \\\text { January } 14 & \text { Charge: tickets } & \$ 160.64 \\\text { January } 19 & \text { Charge: hotel } & \$ 129.66\end{array}$

The interest rate on the card is 1.6% per month. Using the previous balance method, find the Finance charge on February 2.

• A) $10.17
• B) $25.83
• C) $16.14
• D) $19.86

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