Given:
a.) A monthly statement shows a previous balance of $1,350.
b.) A payment of $350.
c.) New purchases of $36 and $56.90.
d.) A periodic rate of 1.6%.
Step 1: Let's determine the Unpaid Balance.
Unpaid Balance = Previous Balance – (Payments and Credits)
Unpaid Balance = $1,350 - $350
Unpaid Balance = $1,000
Step 2: Let's determine the Finance Charge.
Finance Charge = Unpaid Balance × Periodic Rate
Finance Charge = $1,000 x 1.6/100 = $1,000 x 0.016
Finance Charge = $16
Step 3: Let's now determine the New Balance.
New Balance = Previous Balance + Finance Charge + New Purchases - (Payments Credits)
New Balance = $1,350 + $16 + $36 + $56.90 - $350
New Balance = $1,108.90
Therefore, the new balance is $1,108.90