PLEASE ANSWER ALL!

B

If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 6% APR and the following transactions? (Round your answer to the nearest cent.)

31-day billing cycle
10/1	Previous balance			$ 1,164
10/3	Credit	$ 79 cr.
10/12	Charge: King Soopers	148
10/15	Payment	310 cr.
10/25	Charge: Delta	321
10/30	Charge: Holiday Fun	61

Amount owed

$

c.

Peg Gasperoni bought a $50,000 life insurance policy for $110 per year. Ryan Life Insurance Company sent her the following billing instructions along with a premium plan example:

"Your insurance premium notice will be mailed to you in a few days. You may pay the entire premium in full without a finance charge or you may pay the premium in installments after a down payment and the balance in monthly installments of $30. The finance charge will be added to the unpaid balance. The finance charge is based on an annual percentage rate of 12%."

If the total policy premium is:	And you put down:	The balance subject to finance charge will be:	The total number of monthly installments ($30 minimum) will be:	The monthly installment before adding the finance charge will be:	The total finance charge for all installments will be:	And the total deferred payment price will be:
$110	$30.00	$ 80.00	3	$30.00	$ 1.74	$111.74
210	50.00	160.00	6	30.00	4.99	214.99
310	75.00	235.00	8	30.00	11.00	321.00

Peg feels that the finance charge of $1.74 is in error. Check your answer.

a.	What is the actual finance charge for the first three months? (Round your answer to the nearest cent.)

Finance Charge

$

b.

Is she correct?

	Yes
	No