Question 9 • FowU - Financial Math - B
With the previous balance method, the finance charge is based on the beginning balance; payments and purchases during the cycle do not change the balance used for this calculation. The monthly rate is 14.61% ÷ 12 = 1.2175%, so $969.26 × 0.012175 = about $11.80. The correct choice is $11.80.
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