the table below shows a summary of gregs credit - card statement for the month of february.\n\ntransaction…

the table below shows a summary of gregs credit - card statement for the month of february.\n\ntransaction types\tamount\nunpaid balance from january (beginning balance on february 1)\t$592.75\npayments made during the month of february\t$22.10\npurchases made during the month of february\t$159.79\n\ncomplete the parts below. write your answer to the nearest cent.\n(a) suppose the credit - card company charges 1.25% monthly interest on the unpaid balance from january. how much interest will this be?\n$\n(b) what will gregs unpaid balance be on his march 1 statement? (assume that this balance will include the interest from part (a), but will not include any interest on his february balance yet.)\n$

the table below shows a summary of gregs credit - card statement for the month of february.\n\ntransaction types\tamount\nunpaid balance from january (beginning balance on february 1)\t$592.75\npayments made during the month of february\t$22.10\npurchases made during the month of february\t$159.79\n\ncomplete the parts below. write your answer to the nearest cent.\n(a) suppose the credit - card company charges 1.25% monthly interest on the unpaid balance from january. how much interest will this be?\n$\n(b) what will gregs unpaid balance be on his march 1 statement? (assume that this balance will include the interest from part (a), but will not include any interest on his february balance yet.)\n$

Answer

Explanation:

Step1: Calculate interest for part (a)

The interest is calculated by multiplying the unpaid balance from January by the monthly - interest rate. The unpaid balance from January is $592.75$ and the monthly interest rate is $1.25%=0.0125$. $I = 592.75\times0.0125$ $I=7.409375\approx7.41$

Step2: Calculate unpaid balance for part (b)

The unpaid balance on March 1 is the unpaid balance from January plus the interest from part (a) plus the purchases in February minus the payments in February. The unpaid balance from January is $592.75$, the interest is $7.41$, the purchases are $159.79$, and the payments are $22.10$. $B=592.75 + 7.41+159.79 - 22.10$ $B=(592.75+7.41+159.79)-22.10$ $B = 759.95 - 22.10$ $B = 737.85$

Answer:

(a) $7.41$ (b) $737.85$