Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 27%. Complete the account activity table for Kathy. (Round your answers to the nearest cent.) Month Previous Month's Balance (in $) Finance Charge (in $) Purchases and Cash Advances Payments and Credits New Balance End of Month (in $) April $643.17 $14.47 $31.45 $75.00 $614.09 May $ $ $287.33 $125.00 $
Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 27%. Complete the account activity table for Kathy. (Round your answers to the nearest cent.) Month Previous Month's Balance (in $) Finance Charge (in $) Purchases and Cash Advances Payments and Credits New Balance End of Month (in $) April $643.17 $14.47 $31.45 $75.00 $614.09 May $ $ $287.33 $125.00 $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 27%. Complete the account activity table for Kathy. (Round your answers to the nearest cent.)
| Month | Previous Month's Balance (in $) |
Finance Charge (in $) |
Purchases and Cash Advances |
Payments and Credits |
New Balance End of Month (in $) |
|---|---|---|---|---|---|
| April | $643.17 | $14.47 | $31.45 | $75.00 | $614.09 |
| May | $ | $ | $287.33 | $125.00 | $ |
Expert Solution
Step 1
When a repayment is made, the credit balance in the account is decreased. Additionally, the balances of the credit accounts are increased by the finance costs. The credit account is expanded with any purchase and cash advance.
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