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Sagot :
To determine the finance charges in month 2, we need to use the given Annual Percentage Rate (APR) of 15% and calculate the monthly finance charge based on the previous balance.
Here's the process step-by-step:
1. Identify the previous balance at the end of month 1:
- Previous balance: \[tex]$45.00 2. Calculate the monthly interest rate: - APR is 15% annually. - Monthly interest rate = \(\frac{15\%}{12} = 1.25\%\) 3. Calculate the finance charges: - Finance charges = Previous balance \(\times\) Monthly interest rate - Finance charges = \$[/tex]45.00 [tex]\(\times\)[/tex] 0.0125
- Finance charges = \[tex]$0.5625 4. Round the result to the nearest cent: - Finance charges = \$[/tex]0.56
Therefore, the finance charges in month 2 are \[tex]$0.56. The correct answer is: A. \$[/tex]0.56
Here's the process step-by-step:
1. Identify the previous balance at the end of month 1:
- Previous balance: \[tex]$45.00 2. Calculate the monthly interest rate: - APR is 15% annually. - Monthly interest rate = \(\frac{15\%}{12} = 1.25\%\) 3. Calculate the finance charges: - Finance charges = Previous balance \(\times\) Monthly interest rate - Finance charges = \$[/tex]45.00 [tex]\(\times\)[/tex] 0.0125
- Finance charges = \[tex]$0.5625 4. Round the result to the nearest cent: - Finance charges = \$[/tex]0.56
Therefore, the finance charges in month 2 are \[tex]$0.56. The correct answer is: A. \$[/tex]0.56
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