Question

Dallas Pierce's most recent credit card statement follows. His finance charge is 18% APR. Calculate Dallas's average daily balance finance charge, and new balance. (Round your final answers to the nearest cent.) 9/2 9/7 9/13 9/17 9/28 30-day billing cycle Billing date $1,200 previous balance Payment $ 100 cr. Charge: kohl's $ 350 Payment $ 200 cm Charge: Walmart s se Answer is complete but not entirely correct. Average daily balance Finance charge New balance $ $ $ 1.248 33® 224 69 1,524 693

Answer 1

Excel formulae spreadsheet:

H A B C D E F 1 Date Balance detail Balance Outstanding days' 2 A B C 3 2-Sep Billing date $1,200 previous balance $1,200 4 7-Sep Payment $100 $1.100 5 13-Sep Charge: Kohl's $350 $1.450 6 17-Sep Payment $200 $1.250 7 28-Sep Charge: WalMart $50 $1,300 8 2-Oct Sum >> Balance E=C D $6,000 $6,600 $5.800 $13.750 $5,200 Finace charge F=E x 18%/365 $2.9589 $3.2548 $2.8603 $6.7808 $2.5644 30 37350 $18.42 << Finance charge 11 Average daily balance >> $1.245.00 New balance >> $1,300.00

CI. 2 3 4 5 6 7 8 A B C D E F G H Date Balance detail Balance Outstanding days' Balance | Finace charge A B C D E=CⓇD F= E x 18%/365 2-Sep Billing date 1200 previous balance =C3 =A4-A3 =E3*F3 =G3*0.18/365 7-Sep Payment 100 =E3-C4 =A5-A4 =E4*F4 =G4*0.18/365 13-SepCharge: Kohl's 350 =E4+C5 =A6-A5 =E5*F5 =G5*0.18/365 17-Sep Payment 200 =E5-C6 =A7-A6 =E6*F6 =G6*0.18/365 28-Sep Charge: WalMart 50 =E6+C7 =A8-A7 =E7*F7 =G7*0.18/365 2-Oct Sum >>I=SUM(F3:F7) =SUM(G3:G7) =SUM(H3:H7) << Finance charge Average daily balance >>=G9/F9 13 New balance >>=E7