Question

Homework: 5.3 Homework (Ch. 11-12) Score: 0 of 1 pt 29 of 45 (26 complete) 12.1.19 Find the average daily balance for the credit card with the following transactions. Assume one month between billing dates using the proper number of days in the month. Then find the finance charge if interest is 1.5% per month on the average daily balance. Finally, find the new balance. Previous Balance Billing Date Date Transaction Jan. 20 Return Jan. 23 Purchase Jan. 30 Purchase Feb. 5 Payment $450.45 Jan. 15 Amount $102.21 $ 34.21 $ 48.90 $120

Answer 1

Answer Pageino ☺ Given that, The rate of interest = 1.5% Assuming that the month has 30 days, The billing date is Jan 15 Billing period = Jan 19 th to Feb 13th (Fes -+31 days) Thitial empeid balance = $450.45 During the billing cuple daily balance for each day . Jan 15th to Tan 19th = $ 450.45 Jan 20th to Jan aand - 450145 -10212) = $ 348.24 Jan 23rd to Jan 29 th = 348.24 + 34.|| . = $382.45 Jan 30 th to Feb With = $382.45.+ 48.90 : : $431.35

Page. No @ Feb 5th to Feb 13TH = 431:35 - 120 = $31.35 . .. The new balance is the last balance on balance sheet is $311.35 Average daily balance = balance from each day in the billig byde No. of days in the cycle (5days x $450.45) + ( 3 days X $348.24) + (7 days * $382.45) + (6 days x 431.35) + (9 days X 311.35) L 30 days 2252.25 + 1044.72 +2677.15 +8588,1 + 2802.15 30 11364,37 30 = $348.81 :

Page No ③ finance charge using average daily balance method = Average daily balance X Rate of interest 1 x billing period - 365 days = 348181 X1.5% x 35 30 = $0.467 i finance charage per month at 15% = $0.467