Question

Use the average daily balance method to compute the finance charge on the credit card account for the previous month. The starting balance and transactions on the account for the month of April are given to the right. Assume an annual interest rate of 18%.

Month: April (30 days); previous month's balance: $480

April 11 | Charged $70 for a coat |

April 17 | Made payment of $120 |

April 20 | Charged $138 for DVDs |

April 29 | Charged $38 for groceries |

Answer #1

Use the unpaid balance method to find the finance charge on the
credit card account. Last? month's balance, the? payment, the
annual interest? rate, and any other transactions are given.
Last? month's balance, ?$410
?Payment, ?$260
Interest? rate, 18.1?%
Bought plane? ticket, ?$100
Bought? luggage, ?$120
Paid hotel? bill, ?$185
The finance charge is ?$
?(Round to the nearest cent as? needed.)

Using the average daily balance method and the information?
given, find the credit card finance charge for the month of August?
(31 days). The annual interest rate is? 18%.
July 31 Balance ?$200
August 8 Charge ?$96
August 16 Payment ?$80
August 17 Charge ?$179
August 23 Charge ?$49
The finance charge is ?$

Using the average daily balance method and the information
given, find the credit card finance charge for the month of August
(31 days). The annual interest rate is 18%.
The finance charge is ? $
July 31
Balance
$340
August 11
Charge
$48
August 16
Payment
$230
August 23
Charge
$143
August 25
Charge
$31

Using the unpaid balance method, find the current month's
finance charge on a credit card account having the following
transactions? Last month's balance: $650 Last payment:
$220 Annual Interest rate: 21% Purchases: $594
Returns: $698

Using the unpaid balance method, find the current month's
finance charge on a credit card account having the following
transactions.
Last month's balance: $530
Last payment: $180
Annual Interest rate: 18%
Purchases: $582
Returns: $317

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...

In John Balfour's credit card account interest is charged on
the average daily balance. The cycle begins on May 4, and the
cycle ends on June 3. The beginning balance is $ 287.54 . A payment
of $200 is posted on May 18. A charge of $17.86 is posted on May
7. A charge of $55.81 is posted on May 12. A charge of $116.42 is
posted on May 29. John is charged 1.46% per period. What is the
finance...

What is the average billing daily balance and finance charge
(APR 15%) for the revolving credit account (assume a 30 day billing
cycle)?
Billing
Previous
Payment
Payment
New Charge New Charge
Date
Balance
Date
Amount
Date
Amount
4/15
$335.50
4/20
$33.55
4/25
$12.50
4/26
$108
Ave daily balance:
Finance Charge:

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 answers to the nearest cent.) $400 balance, 14%, $50
payment
(a) previous balance method
(b) adjusted balance method
(c) average daily balance method

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

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 7 minutes ago

asked 12 minutes ago

asked 34 minutes ago

asked 48 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago