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For the three-part question that follows, provide your answer to each part in the given workspace. Identify...

For the three-part question that follows, provide your answer to each part in the given workspace. Identify each part with a coordinating response. Be sure to clearly label each part of your response as Part A, Part B, and Part C.
Part A: The unpaid balance on a credit card was $1,382.14. During a month, a payment of $250.00 was made and 2 charges were added, for $45.22 and $82.99. The finance charge is 2.2% per month on the unpaid balance. Determine the finance charges for the month.
Part B: Determine the new balance at the end of the month.
Part C: Show your work to support your answer to Part A and Part B.

Answer

  1. Part A:

    Finance charges = Unpaid balance × Finance charge rate = $1,382.14 × 0.022 = $30.41

  2. Part B:

    New balance = (Unpaid balance - Payment + Charges + Finance charges) = ($1,382.14 - $250.00 + $45.22 + $82.99 + $30.41) = $1,290.76

  3. Part C:

    Unpaid balance: $1,382.14
    Payment: -$250.00
    Charges: $45.22 + $82.99 = $128.21
    Finance charges: $30.41
    New balance calculation: $1,382.14 - $250.00 + $128.21 + $30.41 = $1,290.76

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