Blake Ewasko's charge account uses the unpaid balance method to compute the finance charges at a monthly periodic rate of 2.15%. During the month, he charged 189.34 dollar , made a 100.00 payment, and had a $21.54 finance charge. Find Blake's new balance. MCQS Question
I just want to know which method or steps will be used to solve this question. if you can share Any helpful material as well which can help me solve this question this will be great as well. Thanks
$$\text{Unpaid Balance} = \text{Previous Balance} - \text{(Payments and Credits)} = x- 100$$ $$\text{Finance Charge} = \text{Unpaid Balance} \times \text{Periodic Rate} $$ $$21.54 = (x - 100) \times \frac{2.15}{100} $$ $$\therefore \ x -100 = 21.54 \times \frac{100}{2.15} = 1001.86$$
This $(x - 100 = 1001.86)$ is your unpaid balance.
$$\text{New balance} = \text{Unpaid Balance} + \text{Finance Charge} + \text{New Purchases}$$
$$\therefore \ \text{New balance} = 1001.86 + 21.54 + 189.34 = 1212.74$$
I think the given answer is a mistake. The payment of $100.00$ dollars has been counted one extra time at the end (has counted previous balance, $x$, as unpaid balance).