Question 4 • FowU - Financial Math - B
The monthly interest rate is 9.89% ÷ 12 = 0.82417%. For September, add the $33.70 purchase to $922.93, apply interest, then subtract the 3.08% minimum payment: $956.63 × 1.00824167 = $964.51, and $964.51 − $29.71 = $934.80. For October, add $61.70 and $27.80, apply interest, and subtract the minimum payment: $1,024.30 × 1.00824167 = $1,032.74, then $1,032.74 − $31.81 = $1,000.93. The balance is $1,000.93, choice C.
AI-written and checked against the verified answer.