Solutions to Section 7.1. Prob#Billing Date Previous Balance Finance Charge New Purchases Payments...
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Transcript of Solutions to Section 7.1. Prob#Billing Date Previous Balance Finance Charge New Purchases Payments...
Solutions to Section 7.1
Prob# Billing Date
Previous Balance
FinanceCharge
NewPurchases
PaymentsCredits
NewBalance
3 8/15 $ 600 $ 9 $ 140 $ 100 $ 649
4 1/22 $ 410.75 $ 7.20 $ 175 $ 150 $ 442.95
5 3/1 $ 450.95 $ 6.75 $ 39.95 $ 160 $ 337.65
6 9/4 $ 233.23 $ 2.33 $ 40.36 $ 133.23 $ 142.69
7 6/15 $ 675.19 - $ 416.34 $ 675.19 $ 416.34
8 8/1 $ 2494.21 $ 43.65 $ 137.25 $ 450 $ 2225.11
Problem # Previous Balance
FinanceCharge
NewPurchases
PaymentsCredits
NewBalance
1 $ 600 $ 7.50 $ 90 $ 100 $ 597.502 $ 278.75 $ 4.18 $ 35.85 $ 48 $ 270.78
9. $ 1809.3010. $ 299.9711. $ 182.0912. $ 679.5813. Payments = $109.90, New Purchases =
$188.73, New Balance = $369.0414. $ 2494.20
15. $ 634.10 16. $ 405.14 17. $ 349.63
18. 35.26 hours
Questions???
Solutions to Section 7.2
Prob# PreviousBalance
PaymentsCredits
UnpaidBalance
FinanceCharge
NewPurchases
NewBalance
1 $ 600 $ 100 $ 500 $ 7.50 $ 70 $ 577.50
2 $ 220 $ 150 $ 70 $ 1.05 $ 95 $ 166.05
Concept Check Problems
3. Unpaid Balance = $ 761.67 Previous Balance = $ 1111.67 New Balance = $ 1036.23
4. Monthly Rate = 1.90 %
Prob# PreviousBalance
PaymentsCredits
UnpaidBalance
FinanceCharge
NewPurchases
NewBalance
5 $ 350 $ 75 $ 275 $ 4.13 $ 90 $ 369.13
6 $ 125 $ 45.50 $ 80 $ 1.20 $ 42.50 $ 123.70
7 $ 437.50 $ 57.50 $ 380 $ 5.70 $ 222.50 $ 608.20
8. $ 1197.28
9. $ 981.90
Prob#
PreviousBalance
PaymentsCredits
UnpaidBalance
FinanceCharge
NewPurchases
NewBalance
10 $ 419.29 $ 45 $ 374.29 $ 7.49 $ 79.31 $ 461.09
11 $ 556.71 $147.55 $ 409.16 $ 5.11 $ 21.64 $ 435.91
12 $ 411.89
13. Unpaid Balance = $ 974.44 Previous Balance = $ 1224.44 New Balance = $ 1368.88
14. $ 497.58
15. $ 410.93
16. $ 29.69
Spiral Review
Questions???
Solutions to Section 7.3
Concept Check ProblemsProb # Dates Payment Purchase End-of-Day
BalanceNumberOf Days
Sum ofBalances
1 9/9 – 9/15
$ 500 7 $ 3500
2 9/16 $ 100 $ 600 1 $ 600
3 9/17 – 9/21
$ 600 5 $ 3000
4 9/22 $ 150 $ 450 1 $ 450
5 9/23 – 10/8
$ 450 16 $ 7200
6 TOTAL 30 $ 14750
Sum of Balances Number of Days Average Daily Balance
7 $ 14750 30 $491.67
Concept Check Problems
8. Finance Charge = $ 7.38
9. Unpaid Balance = $ 350
10. New Balance = 457.38
11. $ 1680
Prob # Dates Payment Purchase End-of-DayBalance
NumberOf Days
Sum ofBalances
12 9/6 – 9/17
$ 600 12 $ 7200
13 9/18 $ 140 $ 740 1 $ 740
14 9/19 – 9/24
$ 740 6 $ 4440
15 9/25 $ 120 $ 620 1 $ 620
16 9/26 – 10/5
$ 620 10 $ 6200
17 TOTAL 30 $ 19200
Sum of Balances Number of Days Average Daily Balance
18 $ 19200 30 $ 640
Reference PostingDate
TransactionDate
Description Purchases& Advances
Payments& Credits
1037485 4/11 Payment $ 40
4500298 4/15 4/01 Menswear $ 39.95
5473390 4/23 4/21 Housewares $ 15.99
1374655 4/25 Payment $ 50
BillingPeriod
PreviousBalance
PeriodicRate
Average DailyBalance
FinanceCharge
4/1 – 4/30 $ 175 1.2 % $ 163.90 $ 1.97
Payments& Credits
Purchases&
Advances
NewBalance
MinimumPayment
PaymentDue
$ 90 $ 55.94 $ 142.91 $ 25 $ 25
20a. Average = $ 113.57 Finance Charge = $ 1.36
21. 2.5999% = 2.6%
Questions???