Mathematics for Business and Personal Finance

Chapter 7: Charge Accounts and Credit Cards

Practice Tests

1
Determine the new balance.

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A)$326.20
B)$673.80
C)$712.90
D)$1,473.80
2
Greg Forrester's charge account showed a previous balance of $142.35, a finance charge of $1.78, new purchases of $45.23 and $15.67, a payment of $50.00, and a credit of $12.84. What is the new balance?
A)$142.19
B)$152.51
C)$227.87
D)$277.87
3
Glen Keenan's charge account statement shows a previous balance of $97.52, a finance charge of $1.46, new purchases of $12.96 and $54.00, a payment of $30.00, and a credit of $26.99. What is the new balance?
A)$108.95
B)$195.94
C)$192.93
D)$222.93
4
Elena Martinez's charge account statement shows a previous balance of $218.97, a finance charge of $3.28, new purchases of $46.78 and $24.32, a payment of $40.00, and a credit of $23.09. What is the new balance?
A)$81.50
B)$207.68
C)$230.26
D)$356.44
5
The previous monthly balance on Esi Hadi's charge card is $344.56. She makes a payment of $250.00 and has charges of $123.45, $21.56, and $45.90. There is no finance charge. What is the new balance?
A)$94.56
B)$285.47
C)$403.65
D)$785.47
6
Jim Garcia's monthly credit card statement has a previous balance of $405.67. It shows Jim's $300.00 payment. This month's new purchases were $12.50 and $142.32. The account posted a $45.90 credit and the finance charge was $7.65. What is the new balance?
A)$222.24
B)$304.04
C)$523.12
D)$914.04
7
Eric Kawasaki's monthly statement for his credit card shows a $890.34 previous balance, his $270.00 payment, a $12.34 finance charge, and credits of $23.78 and $43.56. This month's new purchases are $456.90 and $32.45. What is the new balance?
A)$1,054.69
B)$1,594.69
C)$1,642.25
D)$1,729.37
8
Cynthia Roberts has a charge account at Harry's Hardware which uses the unpaid-balance method of computing finance charges. The periodic rate is 1.5%. Cynthia's previous balance is $178.85, and she had payments and credits of $74.00. If she has new purchases of $98.74, what is her new balance?
A)$305.39
B)$206.64
C)$205.16
D)$156.42
9
The Adora Smith has a charge account which uses the unpaid-balance method of computing finance charges. The periodic rate is 1.5%. The Adora's previous balance is $47.25, and she had payments and credits of $26.85. If she has new purchases of $113.68, what is her new balance?
A)$81.50
B)$134.08
C)$136.09
D)$134.39
10
Hunter Schatzel has a charge account which uses the unpaid-balance method of computing finance charges. The periodic rate is 1.5%. Hunter's previous balance is $98.56, and he had payments and credits of $47.97. If he has new purchases of $136.85, what is his new balance?
A)$9.68
B)$51.35
C)$187.44
D)$188.20
11
Asa Redd has a charge account which uses the unpaid-balance method of computing finance charges. The periodic rate is 1.9%. Asa's previous balance is $425.32, and he had payments and credits of $326.12. If he has new purchases of $821.47, what is his new balance?
A)$101.08
B)$920.67
C)$922.55
D)$1,572.91
12
ALGEBRA Jose Martinez has a credit card that uses the unpaid-balance method to compute his finance charge. His statement had a previous balance of $329.00, payments of $230.00, and a finance charge of $1.88. To the nearest hundredth percent, what monthly periodic rate is he being charged?
A)0.3%
B)1.0%
C)1.75%
D)1.9%
13
ALGEBRA Sophie Housman's charge account uses the unpaid-balance method to compute the finance charge at a monthly periodic rate of 1.75%. During the month, she charged $224.56, made a $300 payment, and had an $8.70 finance charge. What was Sophie's unpaid balance?
A)$497.14
B)$299.75
C)$156.32
D)$75.44
14
ALGEBRA Dwight Thom's charge account uses the unpaid-balance method to compute the finance charge at a monthly periodic rate of 1.8%. During the month, he charged $458.25, made a $600 payment, and had a $9.12 finance charge. What was Dwight's unpaid balance?
A)$412.36
B)$506.67
C)$685.96
D)$7,875.00
15
Peter Raynor has a charge account at Art's Supplies. The finance charge is computed using the average-daily-balance method where new purchases are included. The billing period is from June 1-30. Peter's previous balance is $112.34. On June 12, he made a payment of $25.00, and on June 18, he made a purchase of $54.68. What is his average daily balance?
A)$32.66
B)$82.66
C)$120.20
D)$142.02
16
The table below shows the activity on Warren Glassman's charge account. The finance charge is computed using the average daily balance method-new purchases included. The billing period is from December 1-31. Warren's previous balance was $156.78. What is Warren's average daily balance?

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A)$167.96
B)$164.09
C)$162.15
D)$161.64
17
Tamara Verri has a charge account where the finance charge is computed using the average-daily-balance method where new purchases are included. The billing period is from November 1-30. Her previous balance is $162.54. On November 12, she made a payment of $50.00 and on November 18 she made a purchase of $32.37. What is her average daily balance?
A)$44.69
B)$144.90
C)$180.18
D)$244.91
18
Guido Spano has a charge account at Orange County Tile. The finance charge is computed using the average-daily-balance method where new purchases are included. The billing period is from September 1-30. His previous balance is $317.94. On September 12, he made a payment of $125.00, and on September 18, he made a purchase of $157.84. What is his average daily balance?
A)$308.58
B)$318.86
C)$473.90
D)$489.70
19
ALGEBRA Sahil Leekha's credit card finance charge is based on the average-daily-balance method-new purchases included. His monthly periodic rate is 2.1%, and her finance charge for the past billing cycle was $32.00. Find his average daily balance.
A)$1,523.81
B)$825.14
C)$672.00
D)$67.20
20
The table below shows the activity on Katrina James' charge account. The finance charge is computed at 2% of the average daily balance-new purchases included. The billing period is from March 1-31. Katrina's previous balance was $220.15. What is Katrina's new balance?

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A)$303.18
B)$270.36
C)$420.36
D)$620.36
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