Given:
Finance Charge per month on unpaid balance = 1.2%
Unpaid balance in a month = $374.95
To find the finance charge in month where the unpaid balance is 374.95, we have:
[tex]\begin{gathered} 1.2\text{ \% of 374.95} \\ \\ =\text{ }\frac{1.2}{100}\times374.95 \\ \\ =0.012\times374.95=4.4994 \end{gathered}[/tex]Therefore, the finance charge in a month in which the customer has an unpaid balance of $374.95 is approximately $4.50
ANSWER:
$4.50
