Xander's credit card has an APR of 26.99% and requires a monthly payment of at least 8% of the balance.  Calculate Xander's finance charge if they had a carryover balance of $48.95 at the beginning of the month.  

To calculate Xander's finance charge, we can follow these steps:

1. **Convert the APR to a monthly interest rate:**
   \[
   \text{Monthly interest rate} = \frac{\text{APR}}{12}
   \]
   \[
   \text{Monthly interest rate} = \frac{26.99\%}{12} = 2.2492\% \text{ (as a percentage)} = 0.022492 \text{ (as a decimal)}
   \]

2. **Calculate the finance charge:**
   The finance charge is calculated by multiplying the carryover balance by the monthly interest rate:
   \[
   \text{Finance charge} = \text{Carryover balance} \times \text{Monthly interest rate}
   \]
   \[
   \text{Finance charge} = 48.95 \times 0.022492 = 1.10 \text{ (rounded to 2 decimal places)}
   \]

So, Xander's finance charge for the month is **$1.10**.

Would you like further details or have any questions?

Here are 5 related questions to think about:
1. How would the finance charge change if Xander's APR was lower, say 20%?
2. What would Xander's finance charge be if the carryover balance was $100 instead?
3. How does making a larger payment than the minimum affect the finance charge over time?
4. What is the effect of compounding on credit card balances with high APRs?
5. How long would it take to pay off the balance if Xander only paid the minimum amount each month?

**Tip:** Always try to pay more than the minimum payment to reduce the amount you pay in interest over time!

Xander's credit card has an APR of 26.99% and requires a monthly payment of at least 8% of the balance. Calculate Xander's finance charge if they had a carryover balance of $48.95 at the beginning of the month.

Learn how to calculate Xander's finance charge for a credit card with an APR of 26.99% and a carryover balance of $48.95. This step-by-step solution covers essential concepts like APR, monthly interest rate, and percentage calculations. Suitable for students in Grades 8-10.

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