Final answer:
Marvin's finance charge as of August 6 using the previous balance method is $1.62, and the new balance on August 6, after adding new charges and subtracting his payment, is $200.76.
Step-by-step explanation:
To solve this question, we need to calculate the finance charge using the previous balance method and then find the new balance as of August 6 for Marvin's credit card transactions.
Part A: Finding the Finance Charge
We are given that Marvin had a previous balance of $129.35 on July 6 and the card charges 1.25% per month as the interest rate. The finance charge can be found by multiplying the previous balance by the monthly interest rate:
Finance Charge = Previous Balance × Monthly Interest Rate
Finance Charge = $129.35 × 0.0125
Finance Charge = $1.616875 (When calculating finance charges, it is customary to round to the nearest cent.)
Finance Charge = $1.62
Part B: Finding the New Balance
To find the new balance on August 6, we will start with the previous balance and add any new charges and the finance charge, then subtract any payments made.
New Balance = Previous Balance + New Charges + Finance Charge - Payments
New Balance = $129.35 + ($36.25 + $29.15 + $104.39) + $1.62 - $100
New Balance = $129.35 + $169.79 + $1.62 - $100
New Balance = $200.76