Homework Answers
In average daily balance method, interest is charged on average of daily balance during billing period. In this method, every day balance is calculated. Then Average of all daily balance is calculated. Then interest is charged on the average Daily balance during the billing period.
In previous balance method, interest is charged on previous balance at end of billing period. Payment or credits made by customer is not deducted.
In adjusted balance method, interest is charged on Previous balance at end of billing period less all payment or credits during the period. Payment and credits are deducted from previous balance. This method is less expensive from previous balance method.
Thus, correct option is B. When using the average daily balance method, interest is charged on average daily balance during the billing period
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When using the O A. average daily balance method, interest is charged on the balance at...
Question 1 (8 points) This problem nvolves credit cards that calculate interest using the Average daily balance method. The monthly interest rate is 1.5% of the Average daily balance. Each exercise s...
Question 1 (8 points) This problem nvolves credit cards that calculate interest using the Average daily balance method. The monthly interest rate is 1.5% of the Average daily balance. Each exercise shows transactions that occurred during the March 1-March 31 billing period. In each exercise, a. Fill in the blanks in the table. Then find the Average daily balance for the billing period. Round to the nearest cent. Transaction description Previous balance, $6240.00 March 1 Billing date March 5 Payment...
Average Daily Balance
The credit card with the transactions described on the right uses the average daily balance method to calculate interest. The monthly interest rate is 1.5% of the average daily balance. Calculate parts a-d using the statement on the right.Previous balance, $6320.00March 1 Billing dateMarch 5 Payment$350.00 creditMarch 7 Charge: Restaurant$50.00March 12 Charge: Groceries$100.00March 21 Charge: Car Repairs$280.00March 31 End of billing periodPayment Due Date: April 9a. Find the average daily balance for the billing period. Round to the nearest cent.b. Find the interest to be paid...
The credit card with the transactions described in the popup below uses the average daily balance...
The credit card with the transactions described in the popup below uses the average daily balance method to calculate interest. The monthly interest rate is 1.3% of the average daily balance. Calculate parts a-d using the statement in the popup. Click the icon to view the credit card statement a. Find the average daly balance for the billing period. Round to the nearest cont. The average daily balance for the billing period is (Round to the nearest cent as needed.)...
The credit card with the transactions described in the popup below uses the average daily balance...
The credit card with the transactions described in the popup below uses the average daily balance method to calculate interest. The monthly interost rate is 1.6 % of the average daily balance. Calculate parts a d using the statement in the popup Cick the icon to view the credit card statement a. Find the average daily balance for the billing period Round to the nearest cont The average daly balance for the biling period is $ (Round to the nearest...
Assume the following: Melita carried an average daily balance of $937 on her credit card this...
Assume the following: Melita carried an average daily balance of $937 on her credit card this month. Her previous balance last month was $1,717, compared to a balance of $227 this month. There are 30 days in this billing cycle and Melita always makes a payment on the fifteenth of the month. Based on this information, calculate the monthly interest charges for credit card accounts charging 14 percent, 16 percent, and 18 percent interest. Complete the following chart. Since the...
The unpaid balance at the start of a 30-day billing cycle was $749.12. A purchase of $54.68 was made on day 14. No payment was made during the billing cycle and a late fee of $33 was charged to the a...
The unpaid balance at the start of a 30-day billing cycle was $749.12. A purchase of $54.68 was made on day 14. No payment was made during the billing cycle and a late fee of $33 was charged to the account on day 26. Find the unpaid balance at the end of the billing cycle. Assume that the annual interest rate on a credit card is 19.79% and interest is calculated by the average daily balance method. The unpaid balance...
`1. With 30 Days in November, what is the average daily balance 2. Calculate interest in...
`1. With 30 Days in November, what is the average daily
balance
2. Calculate interest in November
3. What was the unpaid balance for November after interest is
charged?
4. If Nancy's account instead used the unpaid balance method,
calculate the finance charge and the new balance for the month of
November.
5. The new balance for the month of November would be
Nancy is reviewing her November credit card statement. Her beginning balance was $610 and she made...
Find the average daily balance for the credit card with the following transactions. Assume one month...
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 $459.21 Billing Date May 17 Date Transaction Amount May 19 Return $ 62.45 May 25 Purchase $134.76 May 28 Purchase $ 45.65 June 3 Payment $175 The average daily...
Average Daily Balance: Most credit cards charge interest based on the average daily balance per billing...
Average Daily Balance: Most credit cards charge interest based on the average daily balance per billing cycle. In this case, each balance within the billing cycle is weighted by the number of days it exists. Suppose your credit card has a 30 day billing cycle and the balance for the next 30 days is given in the table below: balance # days Days Transaction (x) (w) 1−7 remaining balance $1200 7 8−13 $150 purchase $1350 6 14−22...
Using the average daily balance method and the information given, find the credit card average daily...
Using the average daily balance method and the information given, find the credit card average daily balance for the month of August July 31Balance (31 days) The annual interest rate is 18% August 9Charge August 19 Payment August 21 Charge August 25 Charge $230 584 560 $186 $25 Round to the nearest cent) The average daily balance for the month of August is S□
Question 1 (8 points) This problem nvolves credit cards that calculate interest using the Average daily balance method. The monthly interest rate is 1.5% of the Average daily balance. Each exercise shows transactions that occurred during the March 1-March 31 billing period. In each exercise, a. Fill in the blanks in the table. Then find the Average daily balance for the billing period. Round to the nearest cent. Transaction description Previous balance, $6240.00 March 1 Billing date March 5 Payment...
The credit card with the transactions described in the popup below uses the average daily balance method to calculate interest. The monthly interest rate is 1.3% of the average daily balance. Calculate parts a-d using the statement in the popup. Click the icon to view the credit card statement a. Find the average daly balance for the billing period. Round to the nearest cont. The average daily balance for the billing period is (Round to the nearest cent as needed.)...
The credit card with the transactions described in the popup below uses the average daily balance method to calculate interest. The monthly interost rate is 1.6 % of the average daily balance. Calculate parts a d using the statement in the popup Cick the icon to view the credit card statement a. Find the average daily balance for the billing period Round to the nearest cont The average daly balance for the biling period is $ (Round to the nearest...
The unpaid balance at the start of a 30-day billing cycle was $749.12. A purchase of $54.68 was made on day 14. No payment was made during the billing cycle and a late fee of $33 was charged to the account on day 26. Find the unpaid balance at the end of the billing cycle. Assume that the annual interest rate on a credit card is 19.79% and interest is calculated by the average daily balance method. The unpaid balance...
`1. With 30 Days in November, what is the average daily
balance
2. Calculate interest in November
3. What was the unpaid balance for November after interest is
charged?
4. If Nancy's account instead used the unpaid balance method,
calculate the finance charge and the new balance for the month of
November.
5. The new balance for the month of November would be
Nancy is reviewing her November credit card statement. Her beginning balance was $610 and she made...
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 $459.21 Billing Date May 17 Date Transaction Amount May 19 Return $ 62.45 May 25 Purchase $134.76 May 28 Purchase $ 45.65 June 3 Payment $175 The average daily...
Using the average daily balance method and the information given, find the credit card average daily balance for the month of August July 31Balance (31 days) The annual interest rate is 18% August 9Charge August 19 Payment August 21 Charge August 25 Charge $230 584 560 $186 $25 Round to the nearest cent) The average daily balance for the month of August is S□
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