SOLUTION: Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 27%. Complete the account activity

Question 1173011: Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 27%. Complete the account activity table for Kathy. (Round your answers to the nearest cent.)
April
previous months balance: $646.17
finance charge: $14.54
purchases and cash advances: $38.45
payments and credits: $85
new balance end of month: $614.16
May
previous months balance: ____
finance charge: ___
purchases and cash advances: $285.33
payments and credits: $125
new balance end of month: ____
My book doesn't tell me how to find the previous balance. So I'm just stuck trying to find a way to get that. I know how to get finance charge and new balance, just need help finding previous months balance.
Answer by ikleyn(52800)   (Show Source): You can put this solution on YOUR website!
.

My dear Finance student (!)

        previous months balance for May

                is

        new balance end of month: $614.16     for April.

It is the answer to your question.

In other words:

        starting balance for May is the ending balance for April.

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