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Q: Sara had a previous balance of 449.13 carried over from last month's credit card bill The credit card company assessed a 6.74 finance charge What is Sara's new balance?
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What is done with the finance charge assessed by a credit company?

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What is done with the finance charge assessed by a credit card company?

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Sara had a previous balance of 449.13 carried over from last months credit card bill The credit card company assessed a 6.74 finance charge What is Saras new balance?

$455.87, assuming Sara has not made any additional charges on her card since receiving the previous credit card bill. When a credit card company assesses a finance charge, the finance charge ($6.74) is added to the existing balance ($449.13) to arrive at a new balance ($455.87). As an aside, if possible, Sara should revolve (carry) her balance on a credit card that charges a lower rate since the $6.74 finance charge represents 18% (17.7%) on an annualized basis.


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