Answer:
(a) unpaid balance = $667.95
(b) Previous balance = $761.67
(c) his new balance = $683.98
Step-by-step explanation:
In the question, we are given the following:
Monthly periodic rate = 2.4%, or 0.024
Curren charges = $256.28
Total payment made = $350
Finance charge = $18.28
Therefore, we now proceed as follows:
(a) unpaid balance
This can be calculated as follows:
Unpaid balance = Previous balance + Current charges - Total payment made ................. (1)
Note that from part (b), Previous balance is equal to $761.67.
Substituting this and other values from the question into equation (1), we have:
Unpaid balance = $761.67 + $256.28 - $350 = $667.95
(b) Previous balance
This can be calculated as follows:
Previous balance = Finance charges / Monthly periodic rate = $18.28 / 2.4% = $18.28 / 0.024 = $761.67
(c) his new balance
This can be calculated as follows:
New balance = Unpaid balance * (1 + Monthly periodic rate) = $667.95 * (1 + 2.4%) = $667.95 * (1 + 0.024) = $667.95 * 1.024 = $683.98
