Question

If you are trying to build credit by using a credit card each time you make a purchase with a credit card, deduct that amount from your checking account. that way when you your credit card bill is due you will have enough to pay the credit card in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 12% APR and the following transactions:

10/1 Previous balance $1168.00

10/3 Credit $75.00

10/12 Charge $152

10/15 Payment $35

10/25 Charge $325

10/30 Charge $65

31 day billing cycle

Amount owed:_________

I keep coming up with $1612.54 but it's wrong...?

Answer 1

Answer:

10/1	Previous balance	$1168.00
10/3	Credit (-)	$75.00
10/12	Charge(+)	$152
10/15	Payment(-)	$35
10/25	Charge(+)	$325
10/30	Charge(+)	$65
10/30	Finance charge(12% APR)(+)	$12.50
10/31	Total Amount Due	$1,612.50

Principle	Days	Interest
1168	2	0.768
1093.768	14	5.034329
1063.802	15	5.246148
152	18	0.899507
325	5	0.534247
65	1	0.02137
Total		12.5036