Question

3. The activity on Rusty Gates' MasterCard account for one billing period is shown below

March 23 sporting goods $124.00

April 2 payment $1200.00

April 10 bookstore $246.00

a) Find the average daily balance if the billing period is March 16 through April 15 and the previous balance as $4321.00 [March has 31 days.] Make a chart

b) Find the finance charge if the annual interest rate is 21.5%

Answer #1

a). Calculating the Average Daily Balance:-

Date |
Purchase/(payment) |
Balance each day |
No of days till next transaction |
Outstanding Balance |

16 Mar to 22 Mar | 4321 | 4321 | 7 | 30247 |

23 Mar to 1 Apr | 124 | 4445 | 10 | 44450 |

2 Apr to 9 April | -1200 | 3245 | 8 | 25960 |

10 April to 15 April | 246 | 3491 | 6 | 20946 |

Total |
31 |
121603 |

Note- Outstanding Balance = No of days till next transaction*Balance each day

- Balance each day = Previous Balance each day +/- Purchase or (payment)

Average Daily Balance = Outstanding balance/Total no of days

= 121,603/31days

**= $ 3922.68 per day**

b). Finance Charge = Average daily Monthly Balance*Annual Interest rate*Total no of day/365

= $3922.68*0.215*31/365

**= $71.63**

*If you need any clarification, you can ask in
comments. *

**If you like my answer, then please up-vote as it
will be motivating**

The activity on Marny Zell's MasterCard account for one billing
period is shown below. Find the average daily balance and the
finance charge if the billing period is June 26 through July 25,
the previous balance was $392.17, and the annual interest rate is
19.5%. June 30 payment $200.00 July 2 gasoline $39.97 July 10
restaurant $53.00 average daily balance $ finance charge $

The activity on Denise Hellings' Sears account for one billing
period is shown below. Find the average daily balance and the
finance charge if the billing period is March 1 through March 31,
the previous balance was $153.59, and the annual simple interest
rate is 21%. (Round your answers to the nearest cent.)
March 5
payment
$50.00
March 17
tools
$31.17
average daily balance
$
finance charge
$

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:

The activity on Charlie Wilson's Visa account for one billing
period is shown below. Find the average daily
balance and the finance charge if the
billing period is November 11 through December 10, the previous
balance was $643.49, and the annual interest rate is 20%.
November 15 payment $100.00
November 28 office supplies $28.73
December 1 toy store $316.65
the answer for average daily balance is NOT
438.82.
Thanks. In addition, I believe the office supplies and toy store
amounts...

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...

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

Delta airlines case study
Global strategy. Describe the current global
strategy and provide evidence about how the firms resources
incompetencies support the given pressures regarding costs and
local responsiveness. Describe entry modes have they usually used,
and whether they are appropriate for the given strategy. Any key
issues in their global strategy?
casestudy:
Atlanta, June 17, 2014. Sea of Delta employees and their
families swarmed between food trucks, amusement park booths, and
entertainment venues that were scattered throughout what would...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 34 minutes 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

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago

asked 5 hours ago