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The table below shows a summary of Manuel's credit card statement for the month of August.

\begin{tabular}{|l|l|}
\hline Transaction types & Amount \\
\hline Unpaid balance from July (Beginning balance on August 1) & \[tex]$1319.30 \\
\hline Purchases made during the month of August & \$[/tex]230.90 \\
\hline Payments made during the month of August & \[tex]$387.93 \\
\hline
\end{tabular}

Complete the parts below. Write your answer to the nearest cent.

(a) Suppose the credit card company charges $[/tex]1.17\%[tex]$ monthly interest on the unpaid balance from July. How much interest will this be?
$[/tex]\square[tex]$

(b) What will Manuel's unpaid balance be on his September 1 statement? (Assume that this balance will include the interest from part (a), but will not include any interest on his August balance yet.)
$[/tex]\[tex]$ \square$[/tex]



Answer :

GinnyAnswer
Let's address the problem step by step.

### Part (a)
We need to calculate the interest on the unpaid balance from July.

1. Given Data:
- Unpaid balance from July: \[tex]$1319.30 - Monthly interest rate: 1.17% 2. Interest Calculation Formula: Interest = Unpaid balance × Monthly interest rate 3. Calculation: Interest = 1319.30 × (1.17 / 100) By performing this multiplication, the interest on the unpaid balance from July is \$[/tex]15.44.

### Part (b)
We need to calculate the unpaid balance for the September 1 statement. This will include the unpaid balance from July, the interest calculated in part (a), purchases in August, and payments made in August.

1. Given Data:
- Unpaid balance from July: \[tex]$1319.30 - Interest from part (a): \$[/tex]15.44
- Purchases made during August: \[tex]$230.90 - Payments made during August: \$[/tex]387.93

2. Unpaid Balance Calculation Formula:
Unpaid balance = (Unpaid balance from July + Interest from part (a) + Purchases made during August - Payments made during August)

3. Calculation:
Unpaid balance = 1319.30 + 15.44 + 230.90 - 387.93

Simplifying this, we get the unpaid balance for the September 1 statement is \[tex]$1177.71. ### Summary (a) The interest on the unpaid balance from July is \$[/tex]15.44.

(b) The unpaid balance on Manuel's September 1 statement is \[tex]$1177.71. So, the answers are: (a) \$[/tex]15.44

(b) \$1177.71

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