Bill's Appliance Store offers the following credit terms: "The finance charge is based upon the net balance if payment is made within 25 days of the billing date. If payment is made after 25 days, then the finance charge is based on the previous balance. Net balance equals previous balance less payments, returns and credits. In either case, the monthly interest rate is 1.25% on the first $750 of the net balance and 0.75% on any amount over $750."Compute the net balance, the finance charge, and the new balance for the two customers shown below. Assume that both payments were made within the 25-day period.

Question

Bill's Appliance Store offers the following credit terms: "The finance charge is based upon the net balance if payment is made within 25 days of the billing date. If payment is made after 25 days, then the finance charge is based on the previous balance. Net balance equals previous balance less payments, returns and credits. In either case, the monthly interest rate is 1.25% on the first $750 of the net balance and 0.75% on any amount over $750."Compute the net balance, the finance charge, and the new balance for the two customers shown below. Assume that both payments were made within the 25-day period.
​

Quizplus · Accepted Answer

The Answer of Bill's Appliance Store offers the following credit terms: "The finance charge is based upon the net balance if payment is made within 25 days of the billing date. If payment is made after 25 days, then the finance charge is based on the previous balance. Net balance equals previous balance less payments, returns and credits. In either case, the monthly interest rate is 1.25% on the first $750 of the net balance and 0.75% on any amount over $750."Compute the net balance, the finance charge, and the new balance for the two customers shown below. Assume that both payments were made within the 25-day period.
​

Bill's Appliance Store Offers the Following Credit Terms: "The Finance