Question

- 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 |

Answer #1

Your credit card charges 20% interest and the billing cycle start on the 1st. The table below show the beginning balance, charges and payments to the credit card. Your card uses the average daily balance method. Fill out the chart and then determinet the service charge for the month of July.

=> Solution :-

Given data -

* Unpaid balance of month July = 200

* Interest rate = 20%

* Total purchase of July month = 400

* Payment of July month = 400

* Interest of month = 200 × 0.2 = 40

= Current unpaid balance =

( 200 + 40 + 400 - 400 ) = 240

=> The service charge of July month = 240

* The chart is given below -

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is your activity for October, 2018. (It was not a leap year)
What is the service charge if your credit card uses ending
balance method?
Date
Amount
Balance
Days
Start of October
300
Charge
10/4
80
Payment
10/7
300
Charge
10/20
20
Charge
10/31
10

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Multiple Choice
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date
Purchase
Payment
Balance
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75.50
………
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………
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………
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……… (F.Charge)
………

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Billing Date
January 15
Returns
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Clothes
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Bus tickets
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Payments
Purchases
Finance
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New
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$750
$
$
$
$
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Payment
Payment
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Date
Balance
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Amount
Date
Amount
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$12.50
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Ave daily balance:
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