Question

Mario Azaria received the charge account statement partially shownbelow. Find his (a) payments and credits, (b) new purchases, and(c) new balance.

Answer 1

- Payments and Credits (a): $74.40

- New Purchases (b): $188.73

- New Balance (c): $404.54

To find the values for Mario Azaria's account statement regarding (a) payments and credits, (b) new purchases, and (c) new balance, we will follow these steps:

Step 1: Determine Payments and Credits (a)

From the statement, we can see a PAYMENT made for $74.40. This is the total amount for payments and credits.

`\[ \text{Payments and Credits (a)} = \$74.40 \]`

Step 2: Calculate New Purchases (b)

The new purchases are the sum of the charges from the Garden Shop and Menswear, which are $42.75 and $145.98 respectively.

`\[ \text{New Purchases (b)} = \$42.75 + \$145.98 = \$188.73 \]`

Step 3: Compute New Balance (c)

The new balance is the previous balance, plus new purchases, plus any finance charges, minus any payments and credits. From the statement, the previous balance is $285.92, and the finance charge is $4.29. We already calculated the payments and credits and new purchases.

`\[ \text{New Balance (c)} = (\text{Previous Balance}) + (\text{New Purchases}) + (\text{Finance Charge}) - (\text{Payments and Credits}) \]`

`\[ \text{New Balance (c)} = \$285.92 + \$188.73 + \$4.29 - \$74.40 \]`

Now, let's calculate the exact amount for the new balance (c).

The new balance (c) after including the new purchases, finance charge, and subtracting the payments and credits from the previous balance is approximately $404.54 (rounded to the nearest cent).

Here are the final values:

- Payments and Credits (a): $74.40

- New Purchases (b): $188.73

- New Balance (c): $404.54

Answer 2

Explanation: