Question

Consider the following credit card activity for the month of October:

Date	Balance	Number of Days
October 1	$277	4
October 5	$391	7
October 12	$454	7
October 19	$575	5
October 24	$691	5
October 29	$778	3

If this card's annual APR is 26.47% and the balance is paid during the grace period, what is the total amount owed for October?

Round your answer to the nearest dollar.

Answer 1

Answer

Particulars/balance (A)	Days(B)	Amount(A*B)
$                               277	4	$           1,108
$                               391	7	$           2,737
$                               454	7	$           3,178
$                               575	5	$           2,875
$                               691	5	$           3,455
$                               778	3	$           2,334
Total:	31	$         15,687

Calculation of interest @ 26.47%

= $ 15,687 * 26.47% = $ 4,152.3489 / 365 = $ 11.38

Total amount = $ 778 + $ 11.38 = $ 789.38

In case of any doubt, please comment.