# Quiz 13: Consumer and Business Credit

Given that the previous balance is \$345.40 Annual percentage rate is 16% Purchases and cash advances is \$215.39 And payments and credits is \$125.00 Now to calculate the finance charge and new balance by using the unpaid balance method: Step 1: Divide the annual percentage rate by 12 to find the monthly or periodic interest rate. So, the monthly periodic rate is Step 2: Calculate the finance charge by multiplying the previous month's balance by the periodic interest rate from step 1.  So, the finance charge is Step 3: Total all the purchases and cash advances for the month Since, given that the purchases and cash advances for the month is \$215.39 Step 4: Total all the payments and credits for the month Since, given that all the payments and credits for the months is \$125.00 Step 5: Use the following formula to determine the new balance: Therefore, the monthly periodic rate is The finance charge is And the new balance is Our answer is open- end credit. Because, an open-end credit is a loan arrangement in which there is no set number of payments. As the balance of loan is reduced, the borrower can renew the amount of the loan up to a pre-approved credit limit. A form of evolving credit.

The given data is the previous balance is \$301.98 Monthly periodic rate is 12% Purchases and cash advances are \$250.00, \$124.80, \$100.00, and \$178.90 And payments and credits is \$75.00 Now to calculate the finance charge and new balance by using the unpaid balance method: Divide the annual percentage rate by 12 to find the monthly or periodic interest rate. So, the annual percentage rate is 1% a) To find financial charge: Calculate the finance charge by multiplying the previous month's balance by the periodic interest rate from step 1.  Therefore, the finance charge is b) To find the new balance: Total all the purchases and cash advances for the month All the purchases and cash advances for the month is Total all the payments and credits for the month Since, given that all the payments and credits for the months is \$75.00 Use the following formula to determine the new balance: Therefore, the new balance is There is no answer for this question

There is no answer for this question

There is no answer for this question

There is no answer for this question