   Chapter 13.I, Problem 1RE ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

#### Solutions

Chapter
Section ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

# Calculate the missing information on the following revolving credit accounts. Interest is calculated on the unpaid or previous month’s balance. Annual Monthly Purchases PaymentsPrevious Percentage Periodic Finance and Cash and NewBalace Rate (APR) Rate Charge Advances Credits Balance$167.88 18% 1.5%$2.52 $215.50$50.00 $335.90 _____ _____ ________ To determine To calculate: The monthly periodic rate, finance charge and new balance, if previous balance is$167.88, annual percentage rate is 18%, purchase and cash advances are $215.50 and payments and credits are$50.00.

Explanation

Given Information:

Previous balance is $167.88, annual percentage rate is 18%, purchase and cash advances are$215.50 and payments and credits are $50.00 Formula used: Follow the steps to compute the finance charge and new balance by using the unpaid balance method: Step1: The formula of the monthly periodic rate is computed when the annual percentage rate is divided with the number of months in a year that is 12 months. Monthly Periodic Rate=Annual Percentage Rate12 Step2: The formula of finance charge is computed when the balance of the previous month is multiplied with the monthly periodic rate. Finance Charge=Previous month's balance×periodic rate Step3: The formula of the new balance is computed by adding all previous month balance, finance charge, purchases and cash advances and subtract the total of payments and credits. New balance=Previous Balance+Finance charge+Purchases and cash advancesPayments and credits Calculation: As, Monthly Periodic Rate=Annual Percentage Rate12 Compute the monthly periodic rate by substituting 18% for annual percentage rate, Monthly Periodic Rate=Annual Percentage Rate12months=18%12=1.5% Hence, monthly periodic rate is 1.5% ### Still sussing out bartleby? Check out a sample textbook solution. See a sample solution #### The Solution to Your Study Problems Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees! Get Started ## Additional Math Solutions #### Find more solutions based on key concepts Show solutions add #### Explain the difference between a matched-subjects design and a repeated-measures design. Essentials of Statistics for The Behavioral Sciences (MindTap Course List) #### What is 834 of$12,000?

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