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INSTALLMENT PURCHASES Mag & Donald offers the credit terms shown to its retail customers. In problems 8-12 compute the missing values in the charge accounts shown. Assume that all payments are made within 30 days of the billing date TERMS: Finance Charge is based on the Net Balance, if payment is received within 30 days of the billing date. If payment is made after 30 days, then the Finance Charge is based on the Previous Balance. Net Balance equals Previous Balance less Payments and Credits. In either case, the monthly rate is 1.25% on the first $500 and 1% on any amount over $500. These are annual percentage rates of 15% and 12%, respectively. Payment Press Balance Date Churre New Balance Pursus 4/25/30-- $2,621.05 $1,900.00 $0.00 $661.28 3/25/20 - - $1,827.15 $700.00 $28.75 $672.39 11/25/20 - $1,01963 $325.00 $26.50 $278.75
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