question archive orine has a revolving credit account at an annual percentage rate of 24%
orine has a revolving credit account at an annual percentage rate of 24%
Subject:MathPrice:3.87 Bought7
orine has a revolving credit account at an annual percentage rate of 24%. Her previous monthly balance is $549.79. Find the new balance using the previous month's balance method if Lorine's account showed the following activity: Payment, $143.30; Country Lumber (charge), $230.18; Zahir Antiques (credit), $398.05; Mountain Vineyards (charge), 204.94; Bart's Garage (charge), $214.21.
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
annual percentage rate = 24%
monthly percentage rate = 24%/12=2%=0.02
previous monthly balance = $549.79
Finance charge = Previous month’s balance x Periodic rate =549.79*0.02 =10.9958
Payment+credits = $143.30+$398.05= 541.35
Purchases and Cash advances =$230.18+$204.94+$214.21 =649.33
so new balance is given by
New Balance = Previous balance + Finance Charge + Purchases and Cash advances - Payments
New Balance = 549.79 + 10.9958 + 649.33 - 541.35 = $668.7658
