Top Posters
Since Sunday
23
s
6
t
6
J
5
j
5
s
5
a
5
p
5
f
5
s
5
d
5
j
5
Home Q & A Board Science-Related Homework Help Mathematics
New Topic  
flemingpk flemingpk
wrote...
Go to Answer
Posts: 74
Rep: 0 0
3 weeks ago
Edison Restaurant Supply offers the following credit terms: "The finance charge is based upon the net balance if payment is made within 25 days of the billing date. If payment is made after 25 days, then the finance charge is based on the previous balance. Net balance equals previous balance less payments, returns and credits. In either case, the monthly interest rate is 1.3% on the first $500 of the net balance and 1.1% on any amount over $500."

Compute the net balance, the finance charge, and the new balance for customer Kimberley's Kitchen for two consecutive months. Assume that both payments were made within the 25-day period.

 Previous Returns/NetFinance New
 BalancePaymentsCreditsBalanceChargePurchasesBalance
a.$2,874.63$   750.00$261.22______________$409.74_______
b._______$2,000.00$103.74______________$612.77_______
Textbook 
Contemporary Business Mathematics for Colleges

Contemporary Business Mathematics for Colleges


Edition: 16th
Authors:
Read 13 times
1 Reply
Replies
Answer verified by a subject expert
deathnature9deathnature9
wrote...
#1
Posts: 69
Rep: 0 0
3 weeks ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here

a.$2,874.63 - $750.00 - $261.22 = $1,863.41 Net Balance
 Net Balance: $1,863.41 
  -   500.00 ´ 1.3%     = $  6.50
   $1,363.41 ´ 1.1%    =+ 15.00
    $21.50 Finance Charge
  
 $1,863.41 + $21.50 + $409.74 = $2,294.65 New Balance
  
b.$2,294.65 - $2,000.00 - $103.74 = $190.91 Net Balance
 $190.91 ´ 1.3% = $2.48 Finance Charge
 $190.91 + $2.48 + $612.77 = $806.16 New Balance
1

Related Topics

flemingpk Author
wrote...

3 weeks ago
Correct Slight Smile TY
Chaldoren
wrote...

Yesterday
Smart ... Thanks!
cipcal
wrote...

2 hours ago
Good timing, thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  367 People Browsing
 290 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 676
  
 861
  
 251
Your Opinion
Previous poll results: Do you believe in global warming?