[ott Directors. Ste te flowing poles, Wite your enn the Bankr prwiae. Foe comma, dlr ers, ‘and pote mat arses ees. Houe ior oO rene! cent ond gears the ners Perth ‘A. Using the previous balance method, compute the monthly rate and finance charge. Previous Balance APR. Monthly Rate Finance Charge $430.50 189% [ieeianssia 2 $370.40 21% Sa 4 $235.60 19.29% 5. 7 8. Compute the average dally balance and finance charge. As of April 1, the credit card balance shows a previous balance of $905.05. A payment of $100 was made ‘on April 10. A purchase of $75 was made on April 15. Finance charges are Computed at 296 per month. Ths balance was in effect through the biling date, May 1 7. Average daily balance 8 Finance charge ‘C. Compute the finance charge and new balance. The finance charge is based on the previous balance before payments or credits are deducted. The monthly rate is 1.59 on amounts up to $1,000 and 1% on amounts over $1,000. Previous New Balance Payment Credits Purchases Balance 3968.50 9. $230.50 -0- $89.50 10. 31,645.19 11 $425.00 $122.70 $29074 12 $1,656.20 13, __ $582.40 0. $187.60 14, $86030 15. $1050 -0- $9275 1 suiz7go 7882560 S123 0B. . Complete the following word problems. 19. Flaie Fashions charges 1.8396 per month on the previous balances of its accounts. ‘Account #181-909 shows a beginning balance of $574.65. What isthe amount of the finance charge? Finance charge TY 452 BUSINESS MATH USING EXCEL OF 1£091919999999999999 9D teteel ee—— 20. A charge account statement shows @ beginning balance of $278.00 and a billing date ‘of September 5. On September 10, a payment of $60.00 was made. Later two purchases were made: $23.50 on September 20 and $17.38 on September 25. Find the average daily balance on the next billing date of October 5 ‘Average daly balance E. Use Excel to calculate finance charge and new balances. 21. Retrieve ch? Oex01.als from your student Data CD. A. Convert the following rates from annual to monthly. ‘a. Enter formulas in Column B to convert the rates from Annual to Monthly B. Format Column B for Percentage. Set Decimal places to 7 8B. Convert the following rates from monthly to annual 2, Enter formulas in Column B to convert the rates from Monthly to Anni. . Format Column B for Percentage, Set Decimal places to 7 C. Ti-Delta Graphics Services has an account at the local office supply store ‘T-Delta shows a Previous Balance of $593.24, The office supply store computes 1.5% on previous or unpaid balances. Compute Finance Charge and New Balance using Previous Balance {3 In Cell B30, enter a formula’ to ealculate Finance Charge, ©. In Cell B31, enter a formula to calculate New Balance. ©. Format Celis B30 and B31 for Curtency, 2 Decimal places, and 5 D. The monthly rate s 2% on first $1,000 and 1.758% on Amount over $1,000. Compute Finance Charge and New Salance on Previous Balance, less Payments and Credit. In Cell 42, enter a formula to calculate Finance Charge on First $1,000, In Cell C43, enter a formula to calculate the amount over $1,000. In Cell B43, enter a formula to calculate Finance Charge on Amount Over $1,000. Cell D44, enter a formula to calculate Total Finance Charge. in Cell D45, enter a formula to calculate New Balance, Format dollar amounts for Currency, 2 Decimal places, and 5. Save the fle a5 chi ex0Ta.as, ‘22, Retrieve ch10ex02.x5 from your student Data CD, Sebastin’s revolving account is charged 18% APR. The finance charge s computed Using the average daily balance. Compute the new balance a. ill in the Dates in Cells 812 through B15. Bb. In Cells C12 through C15, enter a formula to calculate the Number of Days for each Activity, In Cell C16, enter a formula to calculate the Total Number of Days in the billing cycle <¢. In Cell D12 enter a formula to place the Previous Balance In the cell. . In Cells D13 through O15, enter a formula to calculate the Unpaia Balance, In Coll £12 through €15, enter formulas to calculate the Daily Balance 9 h i In Cell E16, enter a formula to calculate the Total Dally Balance, In Gell E17, enter a formula to calculate the Average Dally Balance, In Cell E18, enter a formula to calculate the Finance Charge. In Cell E19, enter a formula to compute the New Balance. kK. Format dotiar amounts for Currency, 2 Decimal places, and 6 I. Save the fle as ch1ex0Za.xh CHAPTER 10 » Consumer Credit and Mortgages 4s3 pierce