Mathematics with Business Applications

Chapter 7:

Practice Test


1.	Greg Forrester's charge account statement showed a previous balance of $152.35, a finance charge of $1.78, new purchases of $45.23 and $15.67, a payment of $50.00, and a credit of $12.84. What is the new balance?
		A)	$152.19
		B)	$152.51
		C)	$227.87
		D)	$277.87


2.	Cynthia Roberts has a charge account at Harry's Hardware, which uses the unpaid-balance method of computing finance charges. The periodic rate is 1.5 percent. Ms. Roberts's previous balance is $178.85, and she had payments and credits of $74.00. If she has new purchases of $98.74, what is her new balance?
		A)	$305.39
		B)	$206.64
		C)	$205.16
		D)	$156.42


3.	Pedro Guarante has a charge account at Art's Supplies. The finance charge is computed using the average-daily-balance method where new purchases are not included. Guarante's previous balance is $145.00, and the billing period is from April 1–April 30. On April 10, Guarante made a $50.00 payment. On April 20, he made a purchase of $63.45. What is his average daily balance?
		A)	$95.00
		B)	$110.00
		C)	$132.82
		D)	$158.45


4.	Wendy Hoyt has a charge account where the finance charge is computed using the average-daily-balance method that includes new purchases. The billing period is from June 1–30. Her previous balance is $112.34. On June 12, she made a payment of $25.00, and on June 18, she made a purchase of $54.68. What is her average daily balance?
		A)	$32.66
		B)	$82.66
		C)	$120.20
		D)	$142.02


5.	Glen Keenan's charge account statement showed a previous balance of $97.52, a finance charge of $1.46, new purchases of $12.96 and $54.00, a payment of $30.00, and a credit of $26.99. What is the new balance?
		A)	$108.95
		B)	$195.94
		C)	$192.93
		D)	$222.93


6.	Elena Martinez's charge account showed a previous balance of $218.97, a finance charge of $3.28, new purchases of $46.78 and $24.32, a payment of $40.00, and a credit of $23.09. What is the new balance?
		A)	$81.50
		B)	$207.68
		C)	$230.26
		D)	$356.44


7.	Telitha Smith has a charge account which uses the unpaid-balance method of computing finance charges. The periodic rate is 1.5 percent. Ms. Smith's previous balance is $47.25, and she had payments and credits of $26.85. If she has new purchases of $113.68, what is her new balance?
		A)	$81.50
		B)	$134.08
		C)	$136.09
		D)	$134.39


8.	Guido Spano has a charge account at Orange County Tile. The finance charge is computed using the average-daily-balance method where new purchases are not included. Spano's previous balance is $317.94, and the billing period is from September 1–30. On September 12, Spano made a $75.00 payment. On Septmember 24, he made a purchase of $157.84. What is his average daily balance?
		A)	$104.84
		B)	$270.44
		C)	$315.37
		D)	$400.78


9.	Tamara Verri has a charge account where the finance charge is computed using the average-daily-balance method that includes new purchases. The billing period is from November 1–30. Her previous balance is $162.54. On November 12, she made a payment of $50.00, and on November 18, she made a purchase of $32.37. What is her average daily balance?
		A)	$44.69
		B)	$144.90
		C)	$180.18
		D)	$244.91


10.	Hunter Schatzel has a charge account which uses the unpaid-balance method of computing finance charges. The periodic rate is 1.5 percent. Hunter's previous balance is $98.56, and he had payments and credits of $47.97. If he has new purchases of $136.85, what is his new balance?
		A)	$9.68
		B)	$51.35
		C)	$187.44
		D)	$188.20