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

14. 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 $1,382.44. 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

Part A: The finance charge is calculated as 2.2% of the unpaid balance. The unpaid balance is $1,382.44. Therefore, the finance charge for the month is:

Finance Charge = $1,382.44 × 0.022 = $30.41

Part B: To determine the new balance, first calculate the total charges and payments:

  1. Total Charges = $45.22 + $82.99 = $128.21
  2. New Balance = Previous Balance + Total Charges - Payment + Finance Charge
  3. New Balance = $1,382.44 + $128.21 - $250.00 + $30.41 = $1,291.06

Part C: Show your work:

  1. Calculate Finance Charge: $1,382.44 × 0.022 = $30.41
  2. Calculate Total Charges: $45.22 + $82.99 = $128.21
  3. Calculate New Balance: $1,382.44 + $128.21 - $250.00 + $30.41 = $1,291.06

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