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

A credit card account had a $236 balance on March 5. A purchase
of $180 was made on March 12, and a payment of $175 was made on
March 28. Find the average daily balance if the billing date is
April 5. (Round your answer to the nearest cent.)

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...

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

The balance on Ramon Felipe's credit card on January
13,
his billing date, was
$ 392.56.
For the period ending February
13,
Ramon had the following transactions at the bottom.
a) Find the average daily balance for the billing period.
b) Find the finance charge to be paid on February
13. Assume an interest rate of 1.2% per month.
c) Find the balance due on February 13.
January 24
Charge:
Restaurant meal
$66.24
January 27
Payment
$110.00
February 22
Charge:...

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 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 ?$49
The finance charge is ?$

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:

An unpaid credit card bill for $876.25 had a due date of
February 10. Purchases of $189.67 were made on February 15, $404.58
on February 16, $11.80 on February 18, and $63.23 was charged on
February 25. A payment of $375 was made on March 2. The annual
interest on the average daily balance is 19.2%. Find the finance
charge (in dollars) on the March 10 bill. Assume it is a non-leap
year. (Enter a number. Round your answer to...

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

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
$

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