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24 April, 14:29

Calculate the finance charge and new balance using the previous balance method. Previous balance = $199.19 Annual rate = 14%

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  1. 24 April, 14:32
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    Finance charge = $2.32

    new balance = $201.51

    Step-by-step explanation:

    Finance charge = Previous balance*Periodic percentage rate

    The previous balance is 199.19

    The annual percentage rate is 0.14. Therefore, the periodic percentage rate is; (0.14/12)

    Finance charge = 199.19 * (0.14/12)

    = 2.3239 = $2.32

    new balance = previous balance + finance charge

    = 199.19 + 2.32

    = $201.51
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