Question

A credit card account had a $236 balance on March 5. A purchase of $180 was made on March 12, and a payment of $175 was made on March 28. Find the average daily balance if the billing date is April 5. (Round your answer to the nearest cent.)

Answer #1

**COMPUTATION OF AVERAGE DAILY BALANCE**

**Average Daily Balance = Sum of the total amount owed
each day of the month / Number of days in the billing period
**

Date |
Payments or
Purchases |
Balance each
day |
Number of days
until balance changes |
Unpaid balance
times number of days |

March 5 - March 11 | $236 | 7 | $1,652 | |

March 12 - March 27 | $180 | $416 | 16 | $6,656 |

March 28 - April 4 | ($175) | $241 | 8 | $1,928 |

TOTAL |
31 |
$10,236 |

**Average Daily Balance** = $10,236 / 31

= **$330.2**

The credit card with the transactions described on the right
uses the average daily balance method to calculate interest. The
monthly interest rate is 2.5% of the average daily balance.
Calculate parts a-d using the statement on the right.
statement:
Transaction description
Transaction amount
Previous Balance $6210.00
March 1 Billing date
March 5 payment
$400.00 credit
march 7 charge: Restaurant
$50.00
March 12 charge: Groceries
$70.00
March 21 charge: car repairs
280.00
March 31 End of billing period
Payment Due...

On August 10, a credit card account had a balance of $335. A
purchase of $52 was made on August 15, and $161 was charged on
August 27. A payment of $79 was made on August 15. The interest on
the average daily balance is 1.35% per month. Find the finance
charge on the September 10 bill. (Round your answer to two decimal
places.)

On
August 10, a credit card account had a balance of $355. A purchase
of $54 was made on August 15, and $151 was charged on August 27. A
payment of $75 was made on August 15. The interest on the average
daily balance is 1.25% per month. Find the finance charge on the
September 10 bill. (Round your answer to two decimal places.)

For the credit card account, assume one month between billing
dates (with the appropriate number of days) and interest of 1.6 %
per month on the average daily balance. Find (a) the average
daily balance, (b) the monthly finance charge, and (c) the
account balance for the next billing. Previous Balance: $434.33
January 12 Billing Date January 15 Returns $104.78 January 22
Clothes $136.55 January 27 Bus tickets $66.55 February 4 Payment
$120 February 7 Flowers $62.31 (a) The average...

A charge account had a balance of $985 on May 5. A purchase of
$252 was made on May 17, and a payment of $150 was made on May 20.
The interest on the average daily balance is 1.5% per month. Find
the finance charge on the June 5 bill. (Round your answer to the
nearest cent.)

The unpaid balance at the start of a 30-day billing cycle was
$721.98. A purchase of $41.45 was made on day 14. No payment was
made during the billing cycle and a late fee of $42 was charged to
the account on day 27. Find the unpaid balance at the end of the
billing cycle. Assume that the annual interest rate on a credit
card is 19.44% and interest is calculated by the average daily
balance method.
The unpaid balance...

An unpaid credit card bill for $876.25 had a due date of
February 10. Purchases of $189.67 were made on February 15, $404.58
on February 16, $11.80 on February 18, and $63.23 was charged on
February 25. A payment of $375 was made on March 2. The annual
interest on the average daily balance is 19.2%. Find the finance
charge (in dollars) on the March 10 bill. Assume it is a non-leap
year. (Enter a number. Round your answer to...

For the credit card account, assume one month between billing
dates (with the appropriate number of days) and interest of
1.1 %
per month on the average daily balance. Find (a) the average
daily balance, (b) the monthly finance charge, and (c) the
account balance for the next billing.
Previous Balance:
$458.89
January 12
Billing Date
January 15
Returns
$103.48
January 21
Clothes
$116.88
January 25
Bus tickets
$87.56
February 2
Payment
$120
February 8
Flowers
$54.43

The activity on Harvey’s credit card account for one billing
period is shown below. The billing period is Sep 28 through Oct 27,
the previous balance was $4050.06, and the annual interest rate is
18 S Z %. Find the average daily balance, the finance charge, and
the new balance. Sep 30 deposit $900 average daily balance:

You had recently received your credit card statement and
wish to be sure the finance charge for the billing cycle is
correct. The statement indicated a beginning balance of $600. On
day 5 a charge of $150 had posted to the account, on day 12 a
charge of $300 posted to the account. On day 15 you had made a
payment of $200. Use the below table to calculate the average daily
balance and the finance charge, assuming the interest...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 7 minutes ago

asked 9 minutes ago

asked 20 minutes ago

asked 22 minutes ago

asked 25 minutes ago

asked 25 minutes ago

asked 33 minutes ago

asked 56 minutes ago

asked 56 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago