Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman

Exercise 95

Alpine Construction, Inc., has a $100,000 line of credit with the Bow Valley Bank. The annual percentage rate is the current prime rate plus 31 4%. The balance on June 1 was $52,900. On June 8, Alpine borrowed $30,600 to pay for a shipment of lumber and roofing materials and on June 18 borrowed another $12,300 for equipment repairs. On June 28, a $35,000 payment was made on the account. The billing cycle for June has 30 days. The current prime rate is 73 4%.
a. What is the finance charge on the account?
b. What is Alpine's new balance?