1. Solutions to Section 7.1

2. Prob#Billing Date Previous Balance Finance Charge New Purchases Payments Credits New Balance 38/15$ 600$ 9$ 140$ 100$ 649 41/22$ 410.75$ 7.20$ 175$ 150$ 442.95 53/1$ 450.95$ 6.75$ 39.95$ 160$ 337.65 69/4$ 233.23$ 2.33$ 40.36$ 133.23$ 142.69 76/15$ 675.19-$ 416.34$ 675.19$ 416.34 88/1$ 2494.21$ 43.65$ 137.25$ 450$ 2225.11 Problem #Previous Balance Finance Charge New Purchases Payments Credits New Balance 1$ 600$ 7.50$ 90$ 100$ 597.50 2$ 278.75$ 4.18$ 35.85$ 48$ 270.78

3. 9.$ 1809.30 10. $ 299.97 11. $ 182.09 12.$ 679.58 13. Payments = $109.90, New Purchases = $188.73, New Balance = $369.04 14. $ 2494.20

4. 15.$ 634.1016.$ 405.1417.$ 349.63 18.35.26 hours

5. Questions???

7. Solutions to Section 7.2

8. Prob#Previous Balance Payments Credits Unpaid Balance Finance Charge New Purchases New Balance 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 %

9. Prob#Previous Balance Payments Credits Unpaid Balance Finance Charge New Purchases New Balance 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

10. Pro b# Previous Balance Payments Credits Unpaid Balance Finance Charge New Purchases New Balance 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

11. 14.$ 497.58 15.$ 410.93 16.$ 29.69 Spiral Review

12. Questions???

14. Solutions to Section 7.3

15. Concept Check Problems Prob #DatesPaymentPurchaseEnd-of-Day Balance Number Of Days Sum of Balances 19/9 – 9/15 $ 5007$ 3500 29/16$ 100$ 6001 39/17 – 9/21 $ 6005$ 3000 49/22$ 150$ 4501 59/23 – 10/8 $ 45016$ 7200 6TOTAL30$ 14750 Sum of BalancesNumber of DaysAverage Daily Balance 7$ 1475030$491.67

16. 8.Finance Charge = $ 7.38 9.Unpaid Balance = $ 350 10. New Balance = 457.38 11. $ 1680

17. Prob #DatesPaymentPurchaseEnd-of-Day Balance Number Of Days Sum of Balances 129/6 – 9/17 $ 60012$ 7200 139/18$ 140$ 7401 149/19 – 9/24 $ 7406$ 4440 159/25$ 120$ 6201 169/26 – 10/5 $ 62010$ 6200 17TOTAL30$ 19200 Sum of BalancesNumber of DaysAverage Daily Balance 18$ 1920030$ 640

18. ReferencePosting Date Transaction Date DescriptionPurchases & Advances Payments & Credits 10374854/11Payment$ 40 45002984/154/01Menswear$ 39.95 54733904/234/21Housewares$ 15.99 13746554/25Payment$ 50 Billing Period Previous Balance Periodic Rate Average Daily Balance Finance Charge 4/1 – 4/30$ 1751.2 %$ 163.90$ 1.97 Payments & Credits Purchases & Advances New Balance Minimum Payment Due $ 90$ 55.94$ 142.91$ 25

19. 20a. Average = $ 113.57 Finance Charge = $ 1.36 21. 2.5999% = 2.6%

20. Questions???