whats the answer to number 1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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whats the answer to number 1?

Transcribed Image Text:QUESTION 1
You have a credit card with an APR (Annual Percentage Rate) of 12%. You begin with a balance of $200, in response to which you
make a payment of $75. The first month you make charges amounting to $50. You make a payment of $75 to reduce the new
balance, and the second month you charge $60. Previous balances, payments and purchases for the months 1 and 2 are given in the
table below:
Month Previous Balance
Payment Purchases Finance Charge
New Balance
$200
$75
$50
a:$
b:$
24
$75
$60
C:$
d:$
What are the values of finance charges a, c and the new balances b, d for the months 1 and 2?
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