Given
Unpaid balance for the month of may = $1,000
Average daily balance = $1,200
Annual interest = 16.8%
=> Monthly Interest = 16.8/12 = 1.4%
Find
Total balance on the next billing date June 1
Explanation
Finance charge = (Monthly Interest rate) x (Average day balance)
= 1.4% x 1200 = $ 16.8
So total Balance on next billing date
= (unpaid balance + Finance charge) x (number of days)
= (1000 + 16.8) x (31)
= (1016.8) x (31)
= $31520.8
Final Answer
$31520.8 is the total balance on next billing date June 1
