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An unpaid credit card bill for $876.25 had a due date of February 10. Purchases of...

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 the nearest cent.)

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Answer #1

Calculation of Finance charge due on 10, March

Date Balance Calculation Amount
15, feb $876.25 $ 876.25 * (19.2 *05) / (100 * 365) $ 2.3046
16, feb $ 1065.92 $ 1065.92 * (19.2 *01) / (100 * 365) $ 0.5607
18 feb $ 1470.5 $ 1470.5 * (19.2 *02) / (100 * 365) $ 1.547
25 feb $ 1482.3 $ 1482.3 * (19.2 *07) / (100 * 365) $ 5.4581
2 march $ 1545.53 $ 1545.53 * (19.2 *05) / (100 * 365) $ 4.065
10 march $ 1170.53 $ 1170.53 * (19.2 *08) / (100 * 365) $ 4.9258
Total finance charges in march 10 bill = $ 18.8612

total amount due = $ 1170.53 + 18.8612

= $ 1189.3912

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