Problem:
Jerry Allison starts the month with a balance on his credit card of $1,070. On the 10th day of the month, he purchases $390 in clothes with his credit card. On the 15th day of the month, he makes a payment on his credit card of $550. Jerry's interest rate is one and a half percent for the month. Jerry's bank calculates the finance charge on their credit card by using the previous balance method.
Required:
Question: What would Jerry's finance charges be for the month?
- $11.17
- $7.80
- $13.18
- $21.90
- $16.05
Note: Please explain comprehensively and give step by step solution.