Question

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 charge for the​ cycle?

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

There are total 31 days in the cycle. For each day the balance has been calculated by adding the charges for that day and subtracting the payments for that day from previous days balance. The average daily balance is the average of these daily balances. Assuming there are 12 periods in a year, APR = 12 * Interest/period.

Then Finance charges for the cycle = Average Daily Balance X APR X days in billing cycle / 365

Finance charge as calculated above comes to be 3.84 (rounded to 2 decimal places)

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
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...
Your credit card charges 20% interest and the billing cycle starts on the 1st.   The table...
Your credit card charges 20% interest and the billing cycle starts on the 1st.   The table below shows the beginning balance, charges and payments to the credit card. Your card uses the average daily balance method.   Fill out the chart and then determine the service charge for the month of July. Days on which the balance is valis Balance from end of June 200 Charge July 4 300 Payment July 16 400 Charge July 20 100
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 ?$49 The finance charge is ?$
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
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.)
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.)
The credit card with the transactions described on the right uses the average daily balance method...
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...
Calculate average daily balance and finance charge (29-day billing cycle beginning on 9/4) given: Finance charge...
Calculate average daily balance and finance charge (29-day billing cycle beginning on 9/4) given: Finance charge is 2% of average daily balance 9/4       Balance        $500 9/13     Payment       20 9/19     Charge          100 Ave daily balance                   Total finance charge:
What is the average billing daily balance and finance charge (APR 15%) for the revolving credit...
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:
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT