BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

Solutions

Chapter
Section
BuyFindarrow_forward

Contemporary Mathematics for Busin...

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

Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 21%. Complete the following five-month account activity table for Kathy.

Previous Purchases
Month's Finance and Cash Payments Nest Balance
Month Balance Charge Advances and Credits End of Month
9. April _____ _____ $46.45 $65.00

_____

To determine

To calculate: The finance charge and the new balance if Kathy Hansen has a revolving credit account, the previous month’s balance is $636.17 such that the current month is April, annual percentage rate is 21%, purchase and cash advances are $46.45 and payments and credits are $65.00.

Explanation

Given Information:

Kathy Hansen has a revolving credit account, the previous month’s balance is $636.17 such that the current month is April, annual percentage rate is 21%, purchase and cash advances are $46.45 and payments and credits are $65.00.

Formula used:

Follow the steps mentioned below to compute the finance charge and new balance by using the unpaid balance method:

Step 1: The monthly periodic rate is computed by dividing the annual percentage rate by the number of months in a year that is 12.

Monthly Periodic Rate=Annual Percentage Rate12

Step 2: The finance charge is computed by multiplying the balance of the previous month with the monthly periodic rate.

Finance Charge=Previous month balance×periodic rate

Step 3: The new balance is computed by adding all previous month balance, finance charge, purchases and cash advances and subtracting the total of payments and credits.

New balance= Previous rate +Finance rate+Purchase and cash advancesPayments and credits

Calculation:

Consider that the previous month’s balance is $636.17 such that the current month is April, annual percentage rate is 21%, purchase and cash advances are $46.45 and payments and credits are $65.00.

Compute monthly periodic rate by substituting annual percentage rate equals to 21%,

Monthly Periodic Rate=Annual Percentage Rate12=21%12=1

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

Chapter 13 Solutions

Show all chapter solutions add
Sect-13.I P-8RESect-13.I P-9RESect-13.I P-10RESect-13.I P-11RESect-13.I P-12RESect-13.I P-13RESect-13.I P-14RESect-13.I P-15RESect-13.I P-16RESect-13.I P-17RESect-13.I P-18RESect-13.II P-4TIESect-13.II P-5TIESect-13.II P-6TIESect-13.II P-7TIESect-13.II P-8TIESect-13.II P-9TIESect-13.II P-1RESect-13.II P-2RESect-13.II P-3RESect-13.II P-4RESect-13.II P-5RESect-13.II P-6RESect-13.II P-7RESect-13.II P-8RESect-13.II P-9RESect-13.II P-10RESect-13.II P-11RESect-13.II P-12RESect-13.II P-13RESect-13.II P-14RESect-13.II P-15RESect-13.II P-16RESect-13.II P-17RESect-13.II P-18RESect-13.II P-19RESect-13.II P-20RESect-13.II P-21RESect-13.II P-22RESect-13.II P-23RESect-13.II P-24RESect-13.II P-25RESect-13.II P-26RESect-13.II P-27RESect-13.II P-28RESect-13.II P-29RESect-13.II P-30RESect-13.II P-31RESect-13.II P-32RESect-13.II P-33RESect-13.II P-34RESect-13.II P-35RESect-13.II P-36RESect-13.II P-37RESect-13.II P-38RESect-13.II P-39RESect-13.II P-40RESect-13.II P-41RESect-13.II P-42RESect-13.II P-43RESect-13.II P-44RESect-13.II P-45RESect-13.II P-46RESect-13.II P-47RESect-13.II P-48RESect-13.II P-49RESect-13.II P-50RESect-13.II P-51RESect-13.II P-52RESect-13.II P-53RESect-13.II P-54RESect-13.II P-55RECh-13 P-1CRCh-13 P-2CRCh-13 P-3CRCh-13 P-4CRCh-13 P-5CRCh-13 P-6CRCh-13 P-7CRCh-13 P-8CRCh-13 P-9CRCh-13 P-10CRCh-13 P-11CRCh-13 P-12CRCh-13 P-13CRCh-13 P-14CRCh-13 P-1ATCh-13 P-2ATCh-13 P-3ATCh-13 P-4ATCh-13 P-5ATCh-13 P-6ATCh-13 P-7ATCh-13 P-8ATCh-13 P-9ATCh-13 P-10ATCh-13 P-11ATCh-13 P-12ATCh-13 P-13ATCh-13 P-14ATCh-13 P-15AT

Additional Math Solutions

Find more solutions based on key concepts

Show solutions add

In Exercises 99-106, factor out the greatest common factor from each expression. 105. 2x5/232x3/2

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Area In Exercises 73-76, find the area the of the given region. y=sin2x

Calculus: Early Transcendental Functions (MindTap Course List)

True or False: x2+1x3dx may be solved using a trigonometric substitution.

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

True or False: , for –π ≤ t ≤ π, is smooth.

Study Guide for Stewart's Multivariable Calculus, 8th

Graph each function by using transformations. fx=-2x-3

College Algebra (MindTap Course List)