Katie had an unpaid balance of $2,072.25 on her credit card statement at the beginning of March. She made a payment of $440.00 during the month. If the interest rate on Katie's credit card was 15.5% per month on the unpaid balance, find the finance charge and the new balance on April 1.

Question

anonymous · Answer

A.Finance charge = $325.31; new balance = $1,957.56 	
B.Finance charge = $331.34; new balance = $1,963.59 	
C.Finance charge = $321.20; new balance = $1,953.45 	
D.Finance charge = $319.31; new balance = $1,951.56

amistre64 · Answer

Any ideas on how to approach it?

anonymous · Answer

None really...that's why I'm asking. :-)

amistre64 · Answer

well, you should have a basic idea, even if it wrong.  you are taking a class arent you?  give me an idea.

amistre64 · Answer

we have a balance, we make a payment ... is the payment before or after the interest is calculated?