I need help calculating the finance charge and new balance using the previous balance method.
Previous balance = $179.32
Annual rate = 16%
Finance charge = $ ?
New purchases = $117.42
Payments/credits = $85.00
New balance = $ ?
I also need help calculating the unpaid balance, finance charge, and the new balance using the unpaid balance method.
Note: interest rate given as a monthly rate.
Previous balance = $179.32
Payments/credits = $85.00
Unpaid balance = $ ?
Monthly rate = 1.25%
Finance charge = $ ?
New purchases = $117.42
New balance = $ ?
Thank You. Once these frusterating questions are finished this completes my assinment.
I also need help calculating the unpaid balance, finance charge, and the new balance using the unpaid balance method.
Note: interest rate given as a monthly rate.
Previous balance = $179.32
Payments/credits = $85.00
Unpaid balance = $ ?
Monthly rate = 1.25%
Finance charge = $ ?
New purchases = $117.42
New balance = $ ?
Calculate the unpaid balance, finance charge, and new balance using the unpaid balance method.
Note: interest rate is given as a monthly rate.
Previous balance = $179.32
Payments/credits = $85.00
Unpaid balance = $
Monthly rate = 1.25%
Finance charge = $
New purchases = $117.42
New balance = $
To calculate the finance charge and new balance using the previous balance method:
1. Calculate the finance charge:
- Multiply the previous balance by the annual rate, which is 16% or 0.16. This gives you the annual interest charge.
- Divide the annual interest charge by 12 to get the monthly interest charge.
- Multiply the monthly interest charge by the previous balance to calculate the finance charge.
Example:
Annual interest charge = $179.32 * 0.16 = $28.67
Monthly interest charge = $28.67 / 12 = $2.39
Finance charge = $2.39
2. Calculate the new balance:
- Add the previous balance, new purchases, and finance charge.
- Subtract the payments/credits.
Example:
New balance = ($179.32 + $117.42 + $2.39) - $85.00 = $214.13
To calculate the unpaid balance, finance charge, and new balance using the unpaid balance method:
1. Calculate the unpaid balance:
- Subtract the payments/credits from the previous balance.
Example:
Unpaid balance = $179.32 - $85.00 = $94.32
2. Calculate the finance charge:
- Multiply the unpaid balance by the monthly interest rate, which is 1.25% or 0.0125.
Example:
Finance charge = $94.32 * 0.0125 = $1.18
3. Calculate the new balance:
- Add the unpaid balance, new purchases, and finance charge.
Example:
New balance = $94.32 + $117.42 + $1.18 = $212.92
In summary, using the previous balance method, the finance charge is $2.39 and the new balance is $214.13. Using the unpaid balance method, the unpaid balance is $94.32, the finance charge is $1.18, and the new balance is $212.92.
I need help calculating the finance charge and new balance using the previous balance method.
Previous balance = $179.32
Annual rate = 16%
Finance charge = $ ?
New purchases = $117.42
Payments/credits = $85.00
New balance = $ ?