CHAPTER 10 EXERCISES Directions Save the flowing problems, White your answes in the bionks provide. Round dls tothe sores cent. Round percents the nearest orth A. Calculate the finance charge using the previous balance method. Previous Monthly Finance Balance Rate Charge 1. $365.30 1.8% 2 $190.40 1.5% : 3. $295.19 1.75% 4 $690.35 1.5% 8B. Determine the finance charge using the average daily balance method. John Richard's charge account shows an opening balance of $500 on July 1. A payment of $180 wos ‘madle on July 10. Purchases of $175 were made on july 15. This amount is in effect until the last day of the billing cycle. An annual rate of 18% is applied to this account. 5. Average daily balance: 6. Finance charge: 7. New balance: . Use the following information to compute the new balance, Previous balance: $313.40 Finance charge: $4.70 Payments: $113.40 Credits: 312.50 Purchases: 837.58 8. New balance: CHAPTER 10 + Consumer Credit and Mortgages 477 iB, Determine the finance charge and the new balance. The finance charge is based on Bog revious balance before payments or crcits are subtracted. The monthly rates are 228 on amounts up to $1,000 and 1.5% on amounts over $1,000, Assume the balance was not paid within the specified period, Previous Finance New Balance Charge Payments Credits Purchases Balance $1,215.60 9. 337850 -0- $161.30 10, $1,015.40 11, $487.65 $39.70 $62.00 12, $1,265.30 13, $315.00 -0- $146.00 14, $1,172.40 15. 519850 -0- $97.60 46, $1,348.20 17, 539280 $42.90 5136.28 18, Determine the annual percentage rate or monthly rate, Round to 2 decimal places. Annual Annual Monthly Rate Percentage Rate Monthly Rate Percentage Rate 19, 18.00% 20. 1.80% F Using the previous balance method, calculate the finance charge and account balance. Previous Balance APR Finance Charge Account Balance $542.18 18.5% 21. 22, : Using the average daily balance method, determine the average dally balance and finance charge. A customers charge account shows a balance of $285.50 on Jane 1. Aupayment of $155.50 was made on June 10, Purchases of $340 were made on june 15, Shanauel ate of 18.596 fs applied to the account. The month of June has 30 days The next billing date is july 1. 23. Average daily balance 24. Finance charge H. Solve the following problem using the adjusted balance method. 25. Unpaid balance 26. APR BUSINESS MATH USING EXCELAssume the balance was not paid within the speci od period. are as follows: 4. Balance paid in 12 monthly installments, b. Interest of 189%, Amount to Total Amount to Be Be Financed Interest Repaid 32,660 Moa 3999 34, 35. 51,350 Me 675 40, a The monthly payment is $129.63. 43. Installment price 44, Expense of installment buying LL Find the rebate fraction in these problems, |. Determine the finance charge and new balance. The finance charge is based a att Brevious balance before payments or crits are subtracted. The monthly {ates are 2% on amounts up to $1,000 and 1.5% on amounts over $1,000, Previous Finance New Balance Charge Payments Credits Purchases Balance $885.50 27, 445550 -0- $160 28, 31,015.00 29, $300.00 $40.00 $7530, J. Calculate the following information on these instaliment purchases. A 10% gah down payment has already been calculated. Terms of installment buying Monthly Installment 33 36 39. a2. Bhd the installment price and expense of using the installment plan for this purchase. The Sash price is $4,509. The down payment is $451. The number of payments 36 Length of Loan Paid in Full Rebate Fraction 16 months 10 months 45. 18 months 9 months 46. HAPTER 10 # Consumer Credit and Mortgages 479