Business Math Final Exam Study Guide - Math Problems Questions with Verified Answers

Juan Mendoza's credit card statement for October showed a previous balance of $239.80, new purchases of $174.50 and payments and credits of $95. The card's annual percentage rate is 24%. The company uses a daily periodic rate. What is Juan's finance charge and new balance for October using the previous balance method? - ANSWER-.24/365= .0007 * 31 = .020 * 239.80 = $4.89 Finance Charge 4.89 + 239.80 + 174.50 - 95 = $324.19 New Balance Ula Johan borrowed $250 on a cash advance from her credit card company. She was charged a daily periodic rate of 0.053% for the 25 days she had the cash advance. She was also charged a 4% cash advance fee. What was the total amount Ula had to pay back? - ANSWER-250 * .00053 * 25 = $3.31 250 * .04 = $10 $250 + $3.31 + $10 = $263.31 Raven Ingram's credit card has a previous balance of $125.62. She made $175 in new purchases during the billing cycle and made a payment of $50. She was charged $1.88 in finance charges. She wants to pay off the entire balance of the card. How much should she pay? - ANSWER-125.62 + 175 + 1.88 - 50= $252.50 How much interest will you for a 18-month promissory note that has a principal of $3,200 and a rate of 7.875%? - ANSWER-3200 * 1.5 * .07875 = $378 What is the daily interest factor for $1,250 borrowed at 13.5% exact interest? - ANSWER-1250 * (.135/365) = $0.4623 A stove costs $525 on the installment plan. You must make a down payment of $75 and make payments for 15 months. What will be your monthly payments? - ANSWER-525-75= $450 $450/ 15 = $30 The purchase price of a used car Wade Hatcher bought was $6,140. Sales tax of 6.5% was charged on the purchase. Registration fees were $116. Wade paid cash for the car. What was the delivered price and balance due on this purchase? - ANSWER-$6140*(.065) = $399.10 $399.10 +$ 6140 + $116 = $6655.10 Archie Beane bought a used van for $8,127. He paid for the van with a $1,500 down payment and 24 monthly payments of $327.86. What total amount did he pay for the