Darrin Newberry's charge account statement shows an unpaid balance of $875. The monthly finance charge is 1.65% of the unpaid balance. What is the new account balance?

1 Answer
David B.
Apr 7, 2018

The new balance is #$889.44#

Explanation:

Assuming that this is a monthly statement and that we are being asked for the total balance with one month's interest. We have the unpaid balance and to calculate the interest we have the interest rate of:

#1.65% -> 1.65/100=0.0165#

The interest is then:

#"Interest" = $875*0.0165 = $14.4375 -> $14.44#

So the new balance is:

#$875+$14.44 = $889.44#

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