the table below shows a summary of ritas credit card statement for the month of december.\n|transaction…

the table below shows a summary of ritas credit card statement for the month of december.\n|transaction types|amount|\n|--|--|--|\n|unpaid balance from november (beginning balance on december 1)|$1104.17|\n|payments made during the month of december|$369.40|\n|purchases made during the month of december|$183.45|\ncomplete the parts below. write your answer to the nearest cent.\n(a) suppose the credit card company charges 1.17% monthly interest on the unpaid balance from november. how much interest will this be?\n(b) what will ritas unpaid balance be on her january 1 statement? (assume that this balance will include the interest from part (a), but will not include any interest on her december balance yet.)

the table below shows a summary of ritas credit card statement for the month of december.\n|transaction types|amount|\n|--|--|--|\n|unpaid balance from november (beginning balance on december 1)|$1104.17|\n|payments made during the month of december|$369.40|\n|purchases made during the month of december|$183.45|\ncomplete the parts below. write your answer to the nearest cent.\n(a) suppose the credit card company charges 1.17% monthly interest on the unpaid balance from november. how much interest will this be?\n(b) what will ritas unpaid balance be on her january 1 statement? (assume that this balance will include the interest from part (a), but will not include any interest on her december balance yet.)

Answer

Explanation:

Step1: Calculate interest

The interest is calculated as a percentage of the unpaid balance. The formula is $I = P\times r$, where $P$ is the principal (unpaid balance) and $r$ is the interest rate. The unpaid balance from November $P=$1104.17$ and the monthly - interest rate $r = 1.17%=0.0117$. $I=1104.17\times0.0117$ $I = 1104.17\times0.0117=12.918789\approx12.92$

Step2: Calculate January 1 unpaid balance

The unpaid balance on January 1 is the beginning balance in December plus the interest from part (a) plus the purchases in December minus the payments in December. The beginning balance in December is $1104.17$, the interest $I = 12.92$, the purchases $P_{p}=183.45$ and the payments $P_{a}=369.40$. $B=1104.17 + 12.92+183.45 - 369.40$ $B=(1104.17+12.92+183.45)-369.40$ $B = 1300.54-369.40$ $B = 931.14$

Answer:

(a) $$12.92$ (b) $$931.14$