Suppose you have a revolving credit account at an annual percentage rate of 12%, and your previous monthly balance is $387.79. Find your new balance (in $) if your account showed the following activity. Use the unpaid balance method. (Round your answer to the nearest cent.)
Statement of Account
Billing cycle: July 1–31
DATE	DESCRIPTION OF TRANSACTIONS	CHARGES
July 04	Kit and Capoodle Pets	$109.08
July 08	Payment	61.00
July 16	Cash advance	92.82
July 22	Mountain Vineyards	31.37
July 29	Vu Video (credit)	91.97
$

To calculate your new balance using the **unpaid balance method**, follow these steps:

### 1. Find the balance after each transaction
Start with the **previous balance** and apply each transaction (charges and credits) in the order they occur within the billing cycle.

- **Previous balance (July 1)**: $387.79
- **July 04 - Kit and Capoodle Pets (charge)**: $109.08  
  New balance = $387.79 + $109.08 = **$496.87**
- **July 08 - Payment (credit)**: $61.00  
  New balance = $496.87 - $61.00 = **$435.87**
- **July 16 - Cash advance (charge)**: $92.82  
  New balance = $435.87 + $92.82 = **$528.69**
- **July 22 - Mountain Vineyards (charge)**: $31.37  
  New balance = $528.69 + $31.37 = **$560.06**
- **July 29 - Vu Video (credit)**: $91.97  
  New balance = $560.06 - $91.97 = **$468.09**

### 2. Calculate the finance charge
The finance charge is calculated on the previous balance using the **annual percentage rate (APR)**. In this case, it's 12% per year or 1% per month.

- **Previous balance** (before July transactions): $387.79
- Monthly interest rate = $ \frac{12\%}{12} = 1\% $
- Finance charge = $ 387.79 \times 1\% = 387.79 \times 0.01 = 3.88 $

### 3. Add the finance charge to the balance
Finally, add the finance charge to the balance after all the transactions:

- New balance = $468.09 + $3.88 = **$471.97**

### Final Answer:
Your new balance at the end of the billing cycle is **$471.97**.

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Would you like further clarification or more details on the steps? 

Here are some related questions to deepen your understanding:
1. How is the finance charge affected by different APRs?
2. What would the balance be if the payment was made later in the month?
3. How does the unpaid balance method differ from the average daily balance method?
4. What effect would paying more than the minimum payment have on future finance charges?
5. How would a higher interest rate affect the total balance?

**Tip**: Always pay attention to the **order of transactions** in your statement when calculating balances.

Suppose you have a revolving credit account at an annual percentage rate of 12%, and your previous monthly balance is $387.79. Find your new balance (in $) if your account showed the following activity. Use the unpaid balance method. (Round your answer to the nearest cent.) Statement of Account Billing cycle: July 1–31 DATE DESCRIPTION OF TRANSACTIONS CHARGES July 04 Kit and Capoodle Pets $109.08 July 08 Payment 61.00 July 16 Cash advance 92.82 July 22 Mountain Vineyards 31.37 July 29 Vu Video (credit) 91.97

Learn how to calculate the new balance on a revolving credit account with a 12% APR using the unpaid balance method. The problem includes detailed steps for applying charges, payments, and calculating the finance charge for a billing cycle. Suitable for Grades 10-12.

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