Studdy AI Logo
Math  /  Numbers & Operations

QuestionSession 54970513 Aumatisel cusion Calculate the finance chatge be on a monthly balance of 5600 with an APR of 2399%2399 \%. Round to the nearest cent as needed. □\square Submit rasponse Einglest
Dend a masasge to the instructor < Join another session

Studdy Solution

STEP 1

1. The monthly balance is $5600.
2. The Annual Percentage Rate (APR) is \(2399\%\).
3. We need to calculate the finance charge for one month.
4. The finance charge is calculated using the formula for monthly interest: \(\text{Monthly Interest} = \frac{\text{APR}}{12} \times \text{Balance}\).

STEP 2

1. Convert the APR to a monthly interest rate.
2. Calculate the monthly finance charge.
3. Round the finance charge to the nearest cent.

STEP 3

Convert the APR to a monthly interest rate by dividing by 12.
Monthly Interest Rate=239912%\text{Monthly Interest Rate} = \frac{2399}{12} \%

STEP 4

Calculate the monthly finance charge using the balance and the monthly interest rate.
Monthly Finance Charge=(239912×1100)×5600\text{Monthly Finance Charge} = \left(\frac{2399}{12} \times \frac{1}{100}\right) \times 5600

STEP 5

Calculate the exact value.
Monthly Finance Charge=(239912×0.01)×5600\text{Monthly Finance Charge} = \left(\frac{2399}{12} \times 0.01\right) \times 5600
=(199.9167×0.01)×5600= \left(199.9167 \times 0.01\right) \times 5600
=1.999167×5600= 1.999167 \times 5600
=11195.3352= 11195.3352

STEP 6

Round the finance charge to the nearest cent.
Rounded Finance Charge=11195.34\text{Rounded Finance Charge} = 11195.34
The finance charge for the month is:
11195.34\boxed{11195.34}

Was this helpful?

Studdy solves anything!

banner

Start learning now

Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

ParentsInfluencer programContactPolicyTerms
TwitterInstagramFacebookTikTokDiscord