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    A Department store has the following credit terms

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    A Department store has the following credit terms the finance charge. If any is based on the previous balance before payments or credits are deducted. The rates are 1.5% per month up to $1,000 and 1.25% per month on amounts in excess of 1,000. These are annual percentage rates of 18% and 15% respectively. Find the new balance for this account. I need to find the finance charge. Previous balance $991.39 payment $675.00 purchase 96.21 and there is a credit to the account of $84.55 now i need to obtain the new finance charge.

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    Solution Preview

    The previous balance is 991.39. The finance charge will be applied to this amount plus new purchase less payment and credit. So the finance charge will be ...

    Solution Summary

    The solution provides a detailed and step-by-step explanation of the problem.

    $2.19

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