Chapter 7 Formulas Flashcards
1
Q
How do you find the New Balance for Account Statements?
A
Previous Balance + Finance Charge + New Purchases - (Payments + Credits)
2
Q
How do you find the Unpaid Balance?
A
Previous Balance - (Payments + Credits)
3
Q
How do you find the Finance Charge using the Unpaid Balance Method?
A
Unpaid Balance x Periodic Rate
4
Q
How do you find the New Balance using the Unpaid Balance Method?
A
Unpaid Balance + Finance Charge + New Purchases
5
Q
How do you find the Average Daily Balance?
A
Sum of Daily Balances/Number of Days
6
Q
How do you find the Finance Charge using the Average Daily Balance Method?
A
Average Daily Balance x Periodic Rate
7
Q
How do you find the New Balance using the Average Daily Balance Method?
A
Unpaid Balance + Finance Charge + New Purchases
