Solutions to Section 7.1

Prob#Billing Date Previous Balance Finance Charge New Purchases Payments Credits New Balance 38/15$ 600$ 9$ 140$ 100$ /22$ $ 7.20$ 175$ 150$ /1$ $ 6.75$ 39.95$ 160$ /4$ $ 2.33$ 40.36$ $ /15$ $ $ $ /1$ $ 43.65$ $ 450$ Problem #Previous Balance Finance Charge New Purchases Payments Credits New Balance 1$ 600$ 7.50$ 90$ 100$ $ $ 4.18$ 35.85$ 48$

9.$ $ $ $ Payments = $109.90, New Purchases = $188.73, New Balance = $ $

15.$ $ $ hours

Questions???

Solutions to Section 7.2

Prob#Previous Balance Payments Credits Unpaid Balance Finance Charge New Purchases New Balance 1$ 600$ 100$ 500$ 7.50$ 70$ $ 220$ 150$ 70$ 1.05$ 95$ Concept Check Problems 3.Unpaid Balance = $ Previous Balance = $ New Balance = $ Monthly Rate = 1.90 %

Prob#Previous Balance Payments Credits Unpaid Balance Finance Charge New Purchases New Balance 5$ 350$ 75$ 275$ 4.13$ 90$ $ 125$ 45.50$ 80$ 1.20$ 42.50$ $ $ 57.50$ 380$ 5.70$ $ $ $

Pro b# Previous Balance Payments Credits Unpaid Balance Finance Charge New Purchases New Balance 10$ $ 45$ $ 7.49$ 79.31$ $ $147.55$ $ 5.11$ 21.64$ $ Unpaid Balance = $ Previous Balance = $ New Balance = $

14.$ $ $ Spiral Review

Questions???

Solutions to Section 7.3

Concept Check Problems Prob #DatesPaymentPurchaseEnd-of-Day Balance Number Of Days Sum of Balances 19/9 – 9/15 $ 5007$ /16$ 100$ /17 – 9/21 $ 6005$ /22$ 150$ /23 – 10/8 $ 45016$ TOTAL30$ Sum of BalancesNumber of DaysAverage Daily Balance 7$ $491.67

8.Finance Charge = $ Unpaid Balance = $ New Balance = $ 1680

Prob #DatesPaymentPurchaseEnd-of-Day Balance Number Of Days Sum of Balances 129/6 – 9/17 $ 60012$ /18$ 140$ /19 – 9/24 $ 7406$ /25$ 120$ /26 – 10/5 $ 62010$ TOTAL30$ Sum of BalancesNumber of DaysAverage Daily Balance 18$ $ 640

ReferencePosting Date Transaction Date DescriptionPurchases & Advances Payments & Credits /11Payment$ /154/01Menswear$ /234/21Housewares$ /25Payment$ 50 Billing Period Previous Balance Periodic Rate Average Daily Balance Finance Charge 4/1 – 4/30$ %$ $ 1.97 Payments & Credits Purchases & Advances New Balance Minimum Payment Due $ 90$ 55.94$ $ 25

20a. Average = $ Finance Charge = $ % = 2.6%

Questions???