Solve the Problem The Interest Rate on the Card Is 1

question 69

Multiple Choice

Solve the problem.
-On the September 15 billing date, the Jeffersons had a balance due of $113.55 on their credit card. The transactions during the following month were: $$\begin{array} { l l r } \text { September 17 } & \text { Payment } & \$ 92.11 \\\text { September 22 } & \text { Charge: airline tickets } & \$ 908.85 \\\text { October 2 } & \text { Charge: carpet } & \$ 1715.66 \\\text { October 13 } & \text { Charge: clothing } & \$ 127.97\end{array}$$
The interest rate on the card is 1.8% per month. Using the previous balance method, find the Finance charge on October 15.

• A) $49.93
• B) $51.59
• C) $2.04
• D) $0.39

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