Calculate the monthly finance charge for the following credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. (Round your answer to the nearest cent.)
$500 balance, 20% rate, $50 payment, previous balance method

Question

Calculate the monthly finance charge for the following credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. (Round your answer to the nearest cent.)
 $500 balance, 20% rate, $50 payment, previous balance method

kropot72 · Answer

Monthlt charge is as follows:
$$(500\times \frac{0.2}{36})+(450\times \frac{0.4}{36})$$