Clarice's credit card has an APR of 23.99% and requires a monthly payment of at least 8% of the balance.  Calculate Clarice's finance charge on a carryover balance of $1,839.42.  

 

Round your answer to the nearest cent.

The finance charge on a credit card balance is typically calculated based on the Annual Percentage Rate (APR). Since the APR is annual, we need to convert it to a monthly rate before calculating the finance charge for a specific month. 

### Steps:
1. **Convert APR to a Monthly Interest Rate**:
   The APR is 23.99%, so the monthly interest rate would be:
   \[
   \text{Monthly Interest Rate} = \frac{23.99\%}{12} = \frac{23.99}{12} = 1.9992\%
   \]

2. **Calculate the Finance Charge**:
   Now, we'll calculate the finance charge by applying the monthly interest rate to the carryover balance of $1,839.42:
   \[
   \text{Finance Charge} = \text{Balance} \times \text{Monthly Interest Rate}
   \]
   \[
   \text{Finance Charge} = 1,839.42 \times \frac{1.9992}{100}
   \]
   \[
   \text{Finance Charge} \approx 1,839.42 \times 0.019992 \approx 36.78
   \]

Thus, **Clarice's finance charge is approximately $36.78**.

Would you like more details or have any questions? Here are 5 related questions:

1. How is the minimum payment calculated based on the balance?
2. What is the effect of paying only the minimum payment on long-term debt?
3. How does a change in APR affect the finance charge?
4. Can the finance charge be reduced by paying off part of the balance before the billing cycle ends?
5. What is the difference between APR and effective interest rate?

**Tip**:

Clarice's credit card has an APR of 23.99% and requires a monthly payment of at least 8% of the balance. Calculate Clarice's finance charge on a carryover balance of $1,839.42. Round your answer to the nearest cent.

Learn how to calculate the finance charge on a credit card balance of $1,839.42 with an APR of 23.99%. This guide covers how to convert APR to a monthly interest rate and apply it to the balance. Suitable for high school students in Grades 9-12.

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