Finance Charge Question

MG94

New member
Joined
Dec 20, 2013
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5
This is another finance/business question I can not figure out.

Using the unpaid balance method, find the current month's finance charge on a credit card account having the following transactions.
Last month's balance: $895
Last Payment: $280
Annual Interest Rate: 21%
Purchases: $521
Returns: $246
What is the current months finance charge?
 
well there must be something called the unpaid balance method in your book. What does that tell you about how to approach the problem?


I did out the problem and I got the answer $20.75. It says I got it wrong and was supposed to be $15.85. What did I do wrong?
 
What did I do wrong?
We can't check work that we can't see. :shock:

Kindly please reply with a clear listing of the steps by which you arrived at your answer of "$20.75". Thank you! ;)
 
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