Question

If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 12% APR and the following transactions? (Round your answer to the nearest cent.)

31-day billing cycle
10/1	Previous balance			$ 1,160
10/3	Credit	$83 cr.
10/12	Charge: King Soopers	$144
10/15	Payment	$270 cr.
10/25	Charge: Delta	$317
10/30	Charge: Holiday Fun	$57

Amount owed            $ ?

Answer 1

The interest payable for the transaction amount shall have to be calculated, since the date outstanding for payment for each transaction

Calculation of amount of Credit card to be paid

Date	Particulars	Amount o/s	No of days o/s	Intrest calculation	Amount payable
10/1	Previous Balance	$1160	31 days	$12	$1172
10/3	Credit	$83	29	$1	$84
10/12	Charge : King Soopers	$144	20	$1	$145
10/15	Payment	$270	17	$2	$272
10/25	Charge: Delta	$317	7	$1	$318
10/30	Charge: Holiday Fun	$57	2	-	$57
					$2048

So total liability to be paid by Kathy Lehner is $2,048

So Amount Owed = $2048