Question

Calculate the unpaid balance, finance charge, and new balance using the unpaid balance method.
Note: interest rate is given as a monthly rate.

Previous balance = $179.32

Payments/credits = $85.00

Unpaid balance = $

Monthly rate = 1.25%

Finance charge = $

New purchases = $117.42

New balance = $

Answer 1

To calculate the unpaid balance, finance charge, and new balance using the unpaid balance method, we can follow the steps outlined below:

1. **Calculate the Unpaid Balance**:

\[
\text{Unpaid Balance} = \text{Previous Balance} - \text{Payments/Credits}
\]

\[
\text{Unpaid Balance} = 179.32 - 85.00 = 94.32
\]

2. **Calculate the Finance Charge**:

To calculate the finance charge, we apply the monthly interest rate to the unpaid balance:

\[
\text{Finance Charge} = \text{Unpaid Balance} \times \text{Monthly Rate}
\]

\[
\text{Finance Charge} = 94.32 \times 0.0125 = 1.178
\]

Rounding this to two decimal places, we get:

\[
\text{Finance Charge} \approx 1.18
\]

3. **Calculate the New Balance**:

The new balance is calculated by adding the finance charge to the unpaid balance and then adding any new purchases:

\[
\text{New Balance} = \text{Unpaid Balance} + \text{Finance Charge} + \text{New Purchases}
\]

\[
\text{New Balance} = 94.32 + 1.18 + 117.42 = 212.92
\]

### Summary:

- **Unpaid Balance**: $94.32
- **Finance Charge**: $1.18
- **New Balance**: $212.92

So, the final answers are:
- Unpaid balance = $94.32
- Finance charge = $1.18
- New balance = $212.92