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Elizabeth’s credit card computes her finance charges using the previous balance method and a 30-day billing cycle. the table below shows elizabeth’s credit card transactions in july. date amount ($) transaction 7/1 969.26 beginning balance 7/3 45.00 payment 7/10 67.48 purchase 7/12 20.00 payment 7/28 85.00 payment if elizabeth has an apr of 14.61%, how much will her july finance charge be? a. $9.97 b. $12.62 c. $11.80 d. $10.80

Sagot :

Answer:

11.80

Step-by-step explanation:

The $11.80 will be her July finance charge option (c) is correct.

It is given that Elizabeth’s credit card computes her finance charges using the previous balance method and a 30-day billing cycle.

It is required to find the July finance charge.

What is APR?

It is defined as the annual percentage rate that represents the yearly interest rate on the borrowing.

We have a principal amount = $969.26

APR = 14.61 %

Per month percent rate = [tex]\frac{14.61}{12}[/tex] ⇒ 1.2175 %

We can calculate the finance charge from the given formula:

Finance charge = Principal value×rate×Time

= 969.29×1.2175%×1

[tex]= 969.29\times\frac{1.2175}{100}\times1[/tex]

= $11.80

Thus, the $11.80 will be her July finance charge.

Learn more about the finance charge here:

https://brainly.com/question/2588555

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