Steps:1. Find the unpaid balance2. Find the finance charge3. Find the new balanceExample 1: A portion ofLucy's charge accountCharge Account Statementstatement is shown88PAYMENT / Thank You40.00below. The monthlyfinance charge is 1.5%of the unpaid balance.What is her newBilling Date: 2/16FinanceChargePreviousUnpaidBalanceNewPayments& CreditsNewBalancePurchasesBalanceaccount balance?$132.40 $40.00| b.| 579.55 c.a.

The finance charge is the amount that is charged by the lender from the borrower for the period at…

Steps: 1. Find the unpaid balance 2. Find the finance charge 3. Find the new balance Example 1: A portion of Lucy's charge account statement is shown 88 below. The monthly finance charge is 1.5% of the unpaid balance. What is her new Billing Previous Balance account balance? $132.40

Steps: 1. Find the unpaid balance 2. Find the finance charge 3. Find the new balance Example 1: A portion of Lucy's charge account statement is shown 88 below. The monthly finance charge is 1.5% of the unpaid balance. What is her new Billing Previous Balance account balance? $132.40

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

100%

Steps:
1. Find the unpaid balance
2. Find the finance charge
3. Find the new balance
Example 1: A portion of
Lucy's charge account
Charge Account Statement
statement is shown
88
PAYMENT / Thank You
40.00
below. The monthly
finance charge is 1.5%
of the unpaid balance.
What is her new
Billing Date: 2/16
Finance
Charge
Previous
Unpaid
Balance
New
Payments
& Credits
New
Balance
Purchases
Balance
account balance?
$132.40 $40.00
| b.
| 579.55 c.
a.

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8. Marissa's charge account statement showed a previous balance of $142.55, a finance charge of $2.82, new purchases of $86.50, and a payment of $80.00. What is her new balance?
In problems 3 through 8, complete the table one entry at a time by filling in the amount that goes where the red star is. Use the unpaid balance method to calculate interest. Assume an 18% annual interest rate. Unpaid Balance at Beginning of Month Unpaid Balance Purchases Purchases Payments at End of Month Finance Month Charge June $350.10 $ 25.00 $36.75 $ 75.00 July $150.40 $ 0 $200.00 August $208.75 $55.40 $150.00
B. Begin again. On August 4, the balance on your card is $1000. Now, see what happens when you make a payment of $900 on September 2. Fill in the chart below. Days at Balance a. Effective Date C. What is the ADB? Activity b. Find the interest you will owe for the billing period, assuming her interest rate is 24.99%. Balance What will be the total balance on September 4? II. Now, based on your findings above, is it better to may a payment at the beginning or end of the billing period? Explain, don't just say beginning or end. 4
K On April 1, Hilda made a $2680 deposit to open a savings account paying 3% compounded daily. She then deposited $200 on May 2 and $630 on May 25. Find the balance on June 30 and the interes earned through that date. Click here to view the 3.5% compound interest table. Click here to view the 3.5% compound interest by quarters table View On June 30, what is the balance in the account? S (Round to the nearest cunt as needed.) - X 3.5% Interest Compounded Daily by Quarter Table 1 Interest by Quarter for 3 % Compounded Daily Assuming 90-day Quarters Number of Quarters. Value of (1+i) 1.008667067 1.017409251 1.026227205 1.035121505 3.5% Interest Compounded Daily Table Number R 1 2 3 4 5 6 7 8 9 10 11 12 13 Values of (1+1) for 3% Compounded Daily Valec of Value of 1.000095890 19 35 (1+1) It (1+i) A 1001823491 37 1.003554076 38 1003650307 56 1003746548 57 1000191790 20 1001919556 1.000287699 21 100201 5631 1.000383617 22 1.002111714 1003842797 1000479544 23 1002207807 41 1003939056 59…
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Prisha received an invoice for $5,000 that had payment terms of 3/5 n/30. She made a partial payment of $2,000 during the discount period. a. Calculate the amount credited. Round to the nearest cent b. Calculate the balance on the invoice after the partial payment was made.
On the April 5 billing date, Michaelle Chappell had a balance due of $1145 54 on her credit card From April 5 through May 4, Michaelle charged an additional $408 76 and made a payment of $900 a) Find the finance charge on May 5, using the previous balance method Assume that the interest rate is 11% per month b) Find the new balance on May 5 CITE a) The finance charge on May 5 is (Round to the nearest cent as needed
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