Question

On August 10, a credit card account had a balance of $355. A purchase of $54...

On August 10, a credit card account had a balance of $355. A purchase of $54 was made on August 15, and $151 was charged on August 27. A payment of $75 was made on August 15. The interest on the average daily balance is 1.25% per month. Find the finance charge on the September 10 bill. (Round your answer to two decimal places.)
Math   Algebra   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The finance charges may be computed as under:

1. The   balance on the credit card   from August 10 to Aug 14 was $ 355. Also, 5*$355 = $ 1775.

2. The balance on the credit card   from August 15 to Aug 26 was $ 355+$ 54 -$ 75 = $334. Also, 12* $ 334 = $ 4008.

3. The balance on the credit card   from August 27 to Sept 09   was $ 334 +151 = $ 485. Also, 14*$ 485 = $ 6790.

The average balance on the credit card   from August 10 to Sept 09 is $ (1775+4008+6790)/31 = $ (12573/31). Hence, the finance charge the interest on the September 10 bill , which equals the interest at 1.25 % per month on the average daily balance is $ (12573/31) * 1.25 % = $ 5.07 (on rounding off to the nearest cent).

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On August 10, a credit card account had a balance of $335. A purchase of $52...
On August 10, a credit card account had a balance of $335. A purchase of $52 was made on August 15, and $161 was charged on August 27. A payment of $79 was made on August 15. The interest on the average daily balance is 1.35% per month. Find the finance charge on the September 10 bill. (Round your answer to two decimal places.)
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...
A credit card account had a $236 balance on March 5. A purchase of $180 was...
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.)
A charge account had a balance of $985 on May 5. A purchase of $252 was...
A charge account had a balance of $985 on May 5. A purchase of $252 was made on May 17, and a payment of $150 was made on May 20. The interest on the average daily balance is 1.5% per month. Find the finance charge on the June 5 bill. (Round your answer to the nearest cent.)
Use the average daily balance method to compute the finance charge on the credit card account...
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
You had recently received your credit card statement and wish to be sure the finance charge...
You had recently received your credit card statement and wish to be sure the finance charge for the billing cycle is correct. The statement indicated a beginning balance of $600. On day 5 a charge of $150 had posted to the account, on day 12 a charge of $300 posted to the account. On day 15 you had made a payment of $200. Use the below table to calculate the average daily balance and the finance charge, assuming the interest...
Using the average daily balance method and the information​ given, find the credit card finance 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...
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 ?$49 The finance charge is ?$
For the credit card​ account, assume one month between billing dates​ (with the appropriate number of​...
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...
In John​ Balfour's credit card account interest is charged on the average daily balance. The cycle...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT