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Calculate the unpaid balance, finance charge, and new balance using the unpaid balance method. Note: The interest rate is given as a monthly rate.

Previous balance: [tex] \$179.32 [/tex]
Payments/credits: [tex] \$85.00 [/tex]
Unpaid balance: [tex] \$\square [/tex]
Monthly rate: [tex] 1.25\% [/tex]
Finance charge: [tex] \$\square [/tex]
New purchases: [tex] \[tex]$117.42 [/tex]
New balance: [tex] \$[/tex]\square [/tex]



Answer :

GinnyAnswer
Sure, let's go through the calculations step-by-step:

1. Calculate the unpaid balance:
- Previous balance: \[tex]$179.32 - Payments/credits: \$[/tex]85.00
- Unpaid balance = Previous balance - Payments/credits
[tex]\[ \text{Unpaid balance} = 179.32 - 85.00 = \$94.32 \][/tex]

2. Calculate the finance charge:
- Monthly rate: 1.25%
- Unpaid balance: \[tex]$94.32 - Finance charge = Unpaid balance * Monthly rate \[ \text{Finance charge} = 94.32 \times \left(\frac{1.25}{100}\right) = \$[/tex]1.179
\]

3. Calculate the new balance:
- Unpaid balance: \[tex]$94.32 - Finance charge: \$[/tex]1.179
- New purchases: \[tex]$117.42 - New balance = Unpaid balance + Finance charge + New purchases \[ \text{New balance} = 94.32 + 1.179 + 117.42 = \$[/tex]212.91899999999998 \approx \[tex]$212.92 \] So, with these calculations, we get: - Unpaid balance: \$[/tex]94.32
- Finance charge: \[tex]$1.179 - New balance: \$[/tex]212.92

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