The table below shows a summary of Alan's credit card statement for the month of August.
Complete the parts below. Write your answer to the nearest cent.
Suppose the credit card company charges 1.46% monthly interest on the unpaid balance from July. How much interest will this be?
(b)
What will Alan's unpaid balance be on his September 1 statement? (Assume that this balance will include the interest from part (a), but will not include any interest on his August balance yet.)
Continui
Time Remainin
Transaction types
Amount
Unpaid balance from July (Beginning balance on August 1)
$2382.80
Purchases made during the month of August
$602.90
Payments made during the month of August
$397.24

Let's break down the two parts of the problem:

### (a) Interest on the unpaid balance from July
The credit card company charges **1.46% monthly interest** on the unpaid balance from July, which is **$2382.80**. To calculate the interest, we use the following formula:

\[
\text{Interest} = \text{Unpaid Balance} \times \frac{\text{Interest Rate}}{100}
\]

\[
\text{Interest} = 2382.80 \times \frac{1.46}{100} = 2382.80 \times 0.0146
\]

Let me calculate that:

\[
\text{Interest} = 34.39
\]

Thus, the interest on the unpaid balance from July is **$34.39**.

---

### (b) Unpaid balance on the September 1 statement
Alan's unpaid balance will be the **unpaid balance from July** (including interest), plus the **purchases made in August**, minus the **payments made during August**.

The formula for the new unpaid balance is:

\[
\text{New Unpaid Balance} = (\text{Unpaid Balance from July} + \text{Interest}) + \text{Purchases} - \text{Payments}
\]

Substitute the given values:

\[
\text{New Unpaid Balance} = (2382.80 + 34.39) + 602.90 - 397.24
\]

Let me calculate that step by step:

1. $ 2382.80 + 34.39 = 2417.19 $ (Unpaid balance including interest)
2. $ 2417.19 + 602.90 = 3020.09 $ (Adding purchases)
3. $ 3020.09 - 397.24 = 2622.85 $ (Subtracting payments)

Thus, the unpaid balance on the September 1 statement will be **$2622.85**.

---

Would you like to go over any specific details? 

Here are 5 related questions:
1. How would the interest change if the monthly rate were 2%?
2. How could making a higher payment in August reduce future interest?
3. What would the balance be if there were no purchases in August?
4. How is interest generally calculated on credit card balances?
5. How could Alan avoid paying interest in the future?

**Tip:** Paying off your full balance each month can help avoid accumulating interest.

The table below shows a summary of Alan's credit card statement for the month of August. Complete the parts below. Write your answer to the nearest cent. Suppose the credit card company charges 1.46% monthly interest on the unpaid balance from July. How much interest will this be? (b) What will Alan's unpaid balance be on his September 1 statement? (Assume that this balance will include the interest from part (a), but will not include any interest on his August balance yet.)

Learn how to calculate monthly interest on an unpaid balance using a 1.46% interest rate and find the unpaid balance for Alan's credit card statement, with a breakdown of interest and payments. This problem involves basic arithmetic, percentage calculations, and interest formulas. Suitable for students in Grades 9-12.

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