Question

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?

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)

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 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 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 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 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 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 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 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 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 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

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 10 minutes ago

asked 25 minutes ago

asked 1 hour ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago

asked 4 hours ago

asked 4 hours ago

asked 4 hours ago