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A Department store has the following credit terms

A Department store has the following credit terms the finance charge. If any is based on the previous balance before payments or credits are deducted. The rates are 1.5% per month up to $1,000 and 1.25% per month on amounts in excess of 1,000. These are annual percentage rates of 18% and 15% respectively. Find the new balance for this account. I need to find the finance charge. Previous balance $991.39 payment $675.00 purchase 96.21 and there is a credit to the account of $84.55 now i need to obtain the new finance charge.

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The previous balance is 991.39. The finance charge will be applied to this amount plus new purchase less payment and credit. So the finance charge will be ...

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$2.19