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.
New
charges
End of
month
1
2
3
4
5
6
Previous
balance
$0.00
$41.00
$220.44
$243 83
5219 47
$316 85
$60) 20
$41.00
$229.00
$71.00
$23.00
$145 00
$333 00
578 00
Payment
received
$0.00
$50.00
$50.00
$50.00
$50.00
$50 00
$50.00
Finance
charges
50 00
?
$2 39
$2 64
$2 38
$343
56 54
Principal
paid
$0.00
$49.56
$47 61
$4736
$47 62
$46 57
$43 46
New
balance
$41.00
$220 44
$243 83
$219 47
$316.85
$603 28
$637 02
What were the finance charges in month 2?
O A. $0.78
OB. $2.39
O C. $0.44
D. SO