Question

A portion of alvin lombardi’s charge account statement follows. the finance charge is computed at 2% of the unpaid balance.

Previous Payments Unpaid Finance New New
Balance & Credits Balance Charge Purchases Balance
$419.29 45.00 a.______ b.______ $79.31 c.______

Answer 1

To find the finance charge, compute 2% of the unpaid balance. Add the finance charge to the previous balance to find the new balance. Subtract previous payments and credits from the new balance to find the purchases balance.

Step-by-step explanation:

In this question, the student is given a portion of Alvin Lombardi's charge account statement. They are asked to find the finance charge, the new balance, and the purchases balance.

To find the finance charge, we need to compute 2% of the unpaid balance. In this case, the previous balance is $419.29, so the finance charge is 2% of $419.29, which is $8.39.

To find the new balance, we need to add the finance charge to the previous balance. Adding $8.39 to $419.29 gives us a new balance of $427.68.

Finally, to find the purchases balance, we need to subtract any previous payments and credits from the new balance. Since the question does not provide information about previous payments or credits, we cannot determine the purchases balance.