Answered

Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Our platform offers a seamless experience for finding reliable answers from a network of experienced professionals. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Find the finance charge for the following:

- Balance: $5186.59
- APR: 19.99%

Hint: Convert the APR to a decimal, then divide it by 12. The finance charge should be rounded to the nearest cent.

Sagot :

GinnyAnswer
To find the finance charge based on the given balance and APR, follow these steps:

1. Convert the APR to a decimal
- Given APR: 19.99%
- To convert a percentage to a decimal, divide it by 100.
[tex]\[ \text{APR decimal} = \frac{19.99}{100} = 0.1999 \][/tex]

2. Calculate the monthly interest rate
- To find the monthly interest rate, divide the annual percentage rate (APR) by 12 (since there are 12 months in a year).
[tex]\[ \text{Monthly Interest Rate} = \frac{0.1999}{12} = 0.016658333333333334 \][/tex]

3. Calculate the finance charge
- The finance charge is determined by multiplying the balance by the monthly interest rate.
[tex]\[ \text{Finance Charge} = 5186.59 \times 0.016658333333333334 = 86.39994508333334 \][/tex]

4. Round the finance charge
- Finance charges, like all money values, should be rounded to two decimal places for practical use.
[tex]\[ \text{Finance Charge (rounded)} = 86.40 \][/tex]

Therefore, the finance charge, when rounded to two decimal places, is $86.40.
Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.