Question

Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days...

Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. (Round your answer to the nearest cent.)

Balance:     $675
Rate:     18%
Payment:     $64
Method:     Average daily balance

$

Homework Answers

Answer #1
Balance = $         675
Rate = 18%
Payment = $           64
Month = 30 days
Payment to be received in = 10 days
Amount left after payment = $675 - $64
= $         611
Average daily balance for the month = [($675 X 10) + ($611 X 20)] / 30 days
= $   632.33
Interest charge for the month is = $632.33 X 18% X 30/365
= $        9.36
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