Answer:
Finance charge = $2.39
Step-by-step explanation:
A finance charge is the cost of borrowing money, including interest and other fees. It can be a percentage of the amount borrowed or a flat fee charged by the company.
In the given question we will calculate the amount of the finance charge
Finance charge= Previous balance×(Annual rate÷12months)
Finance charge=179.32×(16/100÷12months)
Finance charge=179.32×(0.16÷12months)
Finance charge=179.32× 0.0133
=$2.39
New balance= previous balance-payments/credit+finance charge+New purchases
New balance=179.32−85+2.39+117.42
=$214.13
