Final Answer:
The charge account utilizing the unpaid balance method with a monthly periodic rate of 2.15% has an unpaid balance of $212.76. The previous balance, reflecting the charges incurred during the month, stands at $189.34. The new balance, factoring in charges, payments, and a finance charge, is $323.54.
Step-by-step explanation:
Charge account finance charges are computed using the unpaid balance method with a monthly periodic rate of 2.15%. The formula for calculating the finance charge (FC) is given by FC = Unpaid Balance x Monthly Periodic Rate. Additionally, the new balance (NB) is determined by adding the charges, subtracting the payments, and adding the finance charge to the previous balance.
a) To find the unpaid balance, we use the formula UB = NB - Payment + Finance Charge. Given that the payment is $100.00, and the finance charge is $21.54, we substitute these values into the equation to get UB = $189.34 - $100.00 + $21.54 = $212.76.
b) The previous balance remains the same as the amount charged during the month, which is $189.34.
c) The new balance is computed using the formula NB = Previous Balance + Charges - Payments + Finance Charge. Substituting the given values, we get NB = $189.34 + $189.34 - $100.00 + $21.54 = $323.54.
In summary, the unpaid balance is $212.76, the previous balance is $189.34, and the new balance is $323.54. These calculations provide a clear understanding of the financial transactions and how they contribute to the final balance on the charge account.