Abraham's credit card has an APR of 13%, calculated on the previous monthly balance, and Abraham makes a payment of $50 every month. His credit card
record for the last 7 months is shown in the table below.
End of Previous New Payment Finance Principal New
month balance charges
received charges paid
balance
1
$0.00 $4100 $0.00 $0.00
$0.00 $41.00
2
$41.00 $229.00 $50.00
?
$49.56 $220.44
3
$220.44 $71.00 $50.00
$2.39
$47.61 $243.83
4
$243.83 $23.00 $50.00
$2.64
$47.36 $219.47
5
$219.47 $145.00 $50.00 $2 38 $47 62 $316.85
6
$316.85 $333.00 $50.00
$3.43 $46.57 $603.28
7 $603.28 $78.00 $50.00 $6.54 $43.46 $637.82
What were the finance charges in month 2?