Question

Register
Date
Transactions
Unpaid Balance
April 10
1389.21
April 11
April 12
April 13
April 14
April 15
April 16
April 17
April 18
April 19
April 20
April 21
April 22
April 23
April 24
April 25
April 26
April 27
April 28
April 29
April 30
May 1
May 2
May 3
May 4
May 5
May 6
May 7
May 8
May 9
Perform the following tasks (continued):
Enter your answers in this column.
At the end of the billing cycle, what is the unpaid balance?
Add all 30 numbers in the third column and write the total here.
Divide the total found in step d by the number of days (30) in the billing cycle. The result is the average daily balance.
Find the finance charge for this billing cycle by completing steps a-b below.
Since the annual percentage rate is 15%, divide this number by 12 to find the monthly percentage rate. The monthly percentage rate is used to find the finance charge per billing cycle. Write your answer as a decimal without the percent symbol.
Determine the finance charge by multiplying the monthly percentage rate found in part a by the average daily balance found in #1e. Write this number to the right as a monetary value (2 decimal places). This is the finance charge.
Find the new balance for this billing cycle. Start with the previous cycle’s balance; add the finance charge, add any purchases, and subtract any payments. This is the new balance.
What will be the minimum payment for this billing cycle? Remember that the minimum payment each month is 1% of the new balance, rounded up to the nearest $5.

MAT101: Week 4 Assignment Details Week 4 Assignment: Credit Card Fees and Charges Assignment Overview Credit cards are like carrying a small loan in your wallet or purse. You are able to pay for items that you might not have available cash or sufficient funds in your checking account to purchase. The bank or other institution that issues the credit card knows that many individuals are satisfied with paying the minimum payment due. In this assignment, you will use a method called "average daily balance to calculate the minimum payment due for a credit card. You will be replicating the process a bank may use to determine finance charges and minimum payments due on a credit card. Assignment Details: Perform the following tasks: • Complete the reading assignment and the interactive lesson before attempting this assignment. • Attend the instructor session to prepare for this assignment. Use this document to calculate the charges for a credit card with a local bank. According to the terms and conditions of the card: This credit card has an annual percentage rate (APR) of 15%. A method called "average daily balance (including new purchases)" is used to calculate your balance. The due date is 30 days after the close of each billing cycle. You will not be charged interest on purchases if you pay your entire balance by the due date of each billing cycle. The minimum payment each month is computed as 1% of the new balance achieved at the end of a billing cycle, rounded up to the nearest $5. • Follow the instructions and enter your responses in the appropriate places. • Calculations must be free of mathematical errors • Use the single billing cycle with the following information: The previous balance was $1389.21 and the billing cycle began on April 10. 0 You made a minimum payment of $15 on April 21. You made a purchase on April 22 for $251.99 and another on May 1 for $77.65. • Submit Week 4 Assignment via Blackboard by clicking on the Week 4 Assignment" link. • Include the proper file naming convention: MAT101_wk4_assn_jsmith_mmddyyyy.

Answer 1

Please find attached image in which answers to all questions are provided:

1) a. & b. Register Date Transactions Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 -15.00 Apr-22 251.99 Apr-23 Apr-24 Apr-25 Apr-26 Apr-27 Apr-28 Apr-29 Apr-30 May-01 77.65 May-02 May-03 May-04 May-05 May-06 May-07 May-08 May-09 Total of all 30 days Unpaid Balance 1,389.21 1,389.21 1,389.21 1,389.21 1,389.21 1,389.21 1,389.21 1,389.21 1,389.21 1,389.21 1,389.21 1,374.21 1,626.20 1,626.20 1,626.20 1,626.20 1,626.20 1,626.20 1,626.20 1,626.20 1,626.20 1,703.85 1,703.85 1,703.85 1,703.85 1,703.85 1,703.85 1,703.85 1,703.85 1,703.85 46,625.97 1) c. 1) d. 1) e. 2) a. 2) b. Unpaid Balance Add all 30 numbers of third column Average Daily Balance (d/30) Monthly % rate (15 /12) Finance Charge New Balance (unpaid balance + Finance charge) Minimum payment required 1,703.85 46,625.97 1,554.20 1.25 19.43 1,723.28 20.00 3) 4)