Answer:
Given equations:
- Unpaid balance = previous balance - (payments & credits)
- Finance charge = unpaid balance x periodic rate
- New balance = unpaid balance + finance charge + new purchases
Convert the periodic rate from percent into decimal by dividing the percent value by 100.
Simply use the values from the tables to calculate the unpaid balance, finance charge and new balance using the given equations (you need to calculate the unpaid balance to be able to calculate the figures needed to complete the tables)
1. Periodic rate = 1.58% = 1.58/100 = 0.0158
⇒ Unpaid balance = 194.06 - 61.50 = 132.56
⇒ Finance charge = 132.56 x 0.0158 = 2.09
⇒ New balance = 132.56 + 2.09 + 29.80 = 164.45
2. Periodic rate = 2.08% = 2.08/100 = 0.0208
⇒ Unpaid balance = 981.35 - 750 = 231.35
⇒ Finance charge = 231.35 x 0.0208 = 4.81
⇒ New balance = 231.35 + 4.81 + 416.49 = 62.65
3. Periodic rate = 2.0% = 2.0/100 = 0.02
⇒ previous balance = 291.84
⇒ payments & credits = 200.00
⇒ new purchases = 17.40 + 17.70 + 46.04 = 81.14
⇒ Unpaid balance = 291.84 - 200 = 91.84
⇒ Finance charge = 91.84 x 0.02 = 1.84
⇒ New balance = 91.84 + 1.84 + 81.14 = 174.82
4. Periodic rate = 1.875% = 1.875/100 = 0.01875
Finance charge = unpaid balance x periodic rate
⇒ 7.99 = unpaid balance x 0.01875
⇒ unpaid balance = 7.99 / 0.01875 = 426.13
payments & credits = 300.00
⇒ Unpaid balance = previous balance - (payments & credits)
⇒ 426.13 = previous balance - 300
⇒ previous balance = 426.13 + 300 = 726.13
new purchases (charges) = 238.75
⇒ New balance = unpaid balance + finance charge + new purchases
⇒ New balance = 426.13 + 7.99 + 238.75 = 672.87
