Answer:
Therefore the new account balance is $9428.47
Explanation:
Given that:
Peggy Andrews has a charge account at Davis Jewelers, which uses the unpaid-balance method of computing finance charges.
The periodic rate = 1.75%
Andrews’ previous balance = $9,472.08
Andrews credit payments = $250
Andrews new purchases = $45
To get the unpaid balance, we subtract Andrews credit payments from her previous balance.
Therefore the unpaid balance = $9472.08 - $250 = $9222.08
Periodic rate = 1.75% of unpaid balance = 0.0175 × $9222.08 = $161.39
The new account balance = unpaid balance + periodic rate + payments and credits = $9222.08 + $161.9 + $45 = $9428.47
Therefore the new account balance is $9428.47
Answer: New account balance = $9,428.47
Explanation:
Given the following ;
Andrew's Account Details at Davis jewelers :
Previous account balance = $9,472.08
Payment and credit = $250.00
New purchase = $45.00
Periodic rate = 1.75%
Using the unpaid balance method, Andrew's account balance can be calculated thus;
Unpaid balance = (previous balance - payment and credit balance)
Unpaid balance = $(9,472.08 - 250) = $9222.08
Interest is charged on unpaid balance :
0.0175 × $9222.08 = $161.39
Therefore, new account balance :
Unpaid balance + interest amount + new purchase
$(9,222.08 + 161.39 + 45) = $9,428.47
