document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1171657>Question 1171657</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Assume that you start with a balance of $4500 on your MasterCard. Assume that MasterCard has finance charges of 12% APR and that each month you make only the minimum payment of 5% of the balance. During the first month, you charge $250, and during the second month, you charge $600. Complete the following table. (Round your answers to the nearest cent.)<BR>\n" );
document.write( "         Prev. Balance   Min. Payment   Purchases   Fin. Charge   New Balance\r<BR>\n" );
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document.write( "Month 1   $              $              $            $             $<BR>\n" );
document.write( "Month 2   $              $              $            $             $ </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #850892 by </B><A HREF=/tutors/aboutme.mpl?userid=CPhill><B>CPhill(1959)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=CPhill><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=CPhill><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=850892\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Here's the completed table with the calculations:\r<BR>\n" );
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document.write( "**Month 1:**\r<BR>\n" );
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document.write( "1.  **Previous Balance:** $4500.00<BR>\n" );
document.write( "2.  **Purchases:** $250.00<BR>\n" );
document.write( "3.  **Finance Charge:**<BR>\n" );
document.write( "    * Monthly interest rate: 12% APR / 12 months = 1% = 0.01<BR>\n" );
document.write( "    * Finance charge: $4500.00 * 0.01 = $45.00<BR>\n" );
document.write( "4.  **New Balance (before payment):** $4500.00 + $250.00 + $45.00 = $4795.00<BR>\n" );
document.write( "5.  **Minimum Payment:** $4795.00 * 0.05 = $239.75<BR>\n" );
document.write( "6. **New Balance (after payment):** $4795.00 - $239.75 = $4555.25\r<BR>\n" );
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document.write( "**Month 2:**\r<BR>\n" );
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document.write( "1.  **Previous Balance:** $4555.25<BR>\n" );
document.write( "2.  **Purchases:** $600.00<BR>\n" );
document.write( "3.  **Finance Charge:**<BR>\n" );
document.write( "    * Finance charge: $4555.25 * 0.01 = $45.55 (rounded to the nearest cent)<BR>\n" );
document.write( "4.  **New Balance (before payment):** $4555.25 + $600.00 + $45.55 = $5200.80<BR>\n" );
document.write( "5.  **Minimum Payment:** $5200.80 * 0.05 = $260.04<BR>\n" );
document.write( "6. **New Balance (after payment):** $5200.80 - $260.04 = $4940.76\r<BR>\n" );
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document.write( "**Completed Table:**\r<BR>\n" );
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document.write( "| Month   | Prev. Balance | Min. Payment | Purchases | Fin. Charge | New Balance |<BR>\n" );
document.write( "| :------ | :------------- | :------------ | :-------- | :---------- | :---------- |<BR>\n" );
document.write( "| Month 1 | $4500.00      | $239.75       | $250.00   | $45.00      | $4555.25     |<BR>\n" );
document.write( "| Month 2 | $4555.25      | $260.04       | $600.00   | $45.55      | $4940.76     |<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );