Calculate the missing information on the revolving credit account. Interest is calculated on the unpaid or previous month's balance. (Round dollars to the nearest cent.)
Previous
Balance	Annual
Percentage
Rate (APR)
(as a %)	Monthly
Periodic
Rate	Finance
Charge
(in $)	Purchases
and Cash
Advances	Payments
and
Credits	New
Balance
(in $)
$2,450.00	
14
 
Incorrect: Your answer is incorrect.
 %	
1 
1
4
%
$ 
28.68
 
Incorrect: Your answer is incorrect.
$1,374.98	$300.00	$ 
4253.66
 
Incorrect: Your answer is incorrect.

Let's break down the problem to calculate the missing information in this revolving credit account. Based on the given details, we can find the correct values step-by-step. Here's a clear outline of the information:

### Given Data:
- **Previous Balance**: $2,450.00
- **Annual Percentage Rate (APR)**: 14%
- **Monthly Periodic Rate**: This can be calculated as $\frac{APR}{12}$.
- **Finance Charge**: This is the charge based on the previous balance and the monthly periodic rate.
- **Purchases and Cash Advances**: $1,374.98
- **Payments and Credits**: $300.00
- **New Balance**: Incorrect (should be recalculated).

### Step-by-Step Calculation:

1. **Monthly Periodic Rate**:  
   \[
   \text{Monthly Periodic Rate} = \frac{14\%}{12} = \frac{14}{12} = 1.167\%
   \]
   Converting this to decimal form:
   \[
   \text{Monthly Periodic Rate (decimal)} = 0.01167
   \]

2. **Finance Charge Calculation**:  
   Finance charge is calculated as:
   \[
   \text{Finance Charge} = \text{Previous Balance} \times \text{Monthly Periodic Rate (decimal)}
   \]
   Substituting the values:
   \[
   \text{Finance Charge} = 2,450.00 \times 0.01167 = 28.61
   \]
   (Rounded to nearest cent)

3. **New Balance Calculation**:  
   The new balance is calculated using the formula:
   \[
   \text{New Balance} = \text{Previous Balance} + \text{Finance Charge} + \text{Purchases and Cash Advances} - \text{Payments and Credits}
   \]
   Substituting the known values:
   \[
   \text{New Balance} = 2,450.00 + 28.61 + 1,374.98 - 300.00 = 3,553.59
   \]

### Final Results:
- **Monthly Periodic Rate**: 1.167%
- **Finance Charge**: $28.61
- **New Balance**: $3,553.59

Let me know if you'd like any clarifications or further details.

---

### Related Questions:
1. What happens to the finance charge if the APR increases to 18%?
2. How is the monthly periodic rate affected by changes in the APR?
3. What is the impact on the new balance if the payment is increased to $500.00?
4. How would the finance charge change if the previous balance was $3,000.00?
5. What would the new balance be if no payments were made this month?

#### Tip:
Always verify your APR and finance charges to ensure you're aware of the total cost of borrowing each month.

Calculate the missing information on the revolving credit account. Interest is calculated on the unpaid or previous month's balance. (Round dollars to the nearest cent.) Previous Balance: $2,450.00, Annual Percentage Rate (APR): 14%, Finance Charge: $28.68, Purchases and Cash Advances: $1,374.98, Payments and Credits: $300.00, New Balance: $4253.66 (Incorrect).

Learn how to calculate the finance charge and new balance on a revolving credit account with a 14% APR and a previous balance of $2,450. Step-by-step breakdown includes key finance formulas and tips for accuracy. Suitable for high school students learning about credit and interest calculations.

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