Question 10 • FowU - Financial Math - B
Under the adjusted balance method, subtract payments from the beginning balance to get the balance used for the finance charge: $424.86 − $55.25 − $20.00 = $349.61. The monthly rate is 13.13% ÷ 12, so the finance charge is about $349.61 × 0.1313 ÷ 12 = $3.83. Add the purchases totaling $160.30 and the finance charge to the balance after payments: $349.61 + $160.30 + $3.83 = $513.74, choice D.
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