Question

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 Date: April 9

a. Find the average daily balance for the billing period. Round to the nearest cent.

The average daily balance for the billing period is: $ ?

b Find the interrest to be paid on april 1, the next billing date. Round to the nearest cent.

the interest to be paid on April 1 is $?

c. Find the balance due on April 1.

the balance due on april 1 is $?

d. this credit card requires a $10 minimum monthly payment if the balance due at the end of the billing period is less than $360. Otherwise, the minimum monthly payment is 1/36 of the balance due at the end of the billing period, rounded up to the nearest whole dollar. What is the minimum monthly payment due by april 9?

The minimum monthly payment is $?

Answer 1