Charlene owes 237.59 on her MasterCard account. She returns...

Charlene owes $\$ 237.59$ on her MasterCard account. She returns one item costing $\$ 47.25$ for credit and then makes two purchases of $\$ 12.39$ and $\$ 20.00 .$ (a) How much is her payment if she wants to pay off the balance on the account? (b) Instead of paying off the balance, she makes a payment of $\$ 75.00$ and incurs a finance charge of $\$ 32.06 .$ What is the balance on her account?

Charlene owes $\$ 237.59$ on her MasterCard account. She returns one item costing $\$ 47.25$ for credit and then makes two purchases of $\$ 12.39$ and $\$ 20.00 .$
(a) How much is her payment if she wants to pay off the balance on the account?
(b) Instead of paying off the balance, she makes a payment of $\$ 75.00$ and incurs a finance charge of $\$ 32.06 .$ What is the balance on her account?

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Key Concepts

Net Balance Calculation

This concept involves summing all the transactions—credits subtracted and debits added—to determine the final amount the account holder owes. It requires careful attention to the order of operations, ensuring that returns (which reduce the balance), purchases (which increase it), and any additional charges or payments are correctly factored in.

Transaction Adjustments

Transaction adjustments refer to the modifications made to an account’s balance through various activities, such as returns, new purchases, or payments. Each of these transactions either increases or decreases the balance, and understanding how each type impacts the overall amount owed is key for accurate financial accounting.

Finance Charges

Finance charges are fees imposed for carrying a balance from one billing period to the next on a credit account. These charges are typically calculated as a percentage of the outstanding balance and increase the total amount owed, making them an important factor in credit management and repayment planning.

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