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Mitchell purchased a laptop 3 months ago using his credit card. After making a few payments, the unpaid...

18. Mitchell purchased a laptop 3 months ago using his credit card. After making a few payments, the unpaid balance on his card is now $648.40. If he purchases a printer for $219.95 and makes a payment of $300.00 this month, calculate the new unpaid balance.
The finance charge on his credit card is 1.65% per month on the unpaid balance.
$579.05
$568.35
$675.35
$879.05

Answer

To calculate the new unpaid balance, follow these steps:

  1. Current unpaid balance: $648.40
  2. Add the cost of the printer: $648.40 + $219.95 = $868.35
  3. Subtract the payment made: $868.35 - $300.00 = $568.35
  4. Calculate the finance charge: 1.65% of $568.35 = $9.37
  5. Add the finance charge to the balance: $568.35 + $9.37 = $577.72

The new unpaid balance is $577.72, which is closest to $579.05.

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