Your credit card lender charges an annual rate of 15 percent on the average daily balance....
Your credit card lender charges an annual rate of 15 percent on the average daily balance. Your balance on March 10, the end of the last billing cycle, was $5,000. The following transactions were posted to your account during the billing cycle: 3/15 New credit purchase $500 3/20 Payment received $750 4/1 New credit purchase $1,000 The last day of the monthly billing cycle is April 10. Calculate the finance charge.
Homework Answers
finance charge = average daily balance * annual interest rate * (number of days in billing cycle / 365)
average daily balance = sum of balance on each day / number of days in billing cycle
number of days in billing cycle = 31 (number of days from March 11 to April 10)
average daily balance = $162,000 / 31 = $5,225.81
finance charge = $5,225.81 * 15% * (31 / 365)
finance charge = $66.58
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Your credit card lender charges an annual rate of 15 percent on
the average daily balance....
Your credit card lender charges an annual rate of 15 percent on the average daily balance....
Your credit card lender charges an annual rate of 15 percent on the average daily balance. Your balance on March 10, the end of the last billing cycle, was $5,000. The following transactions were posted to your account during the billing cycle: 3/15 New credit purchase $500 3/20 Payment received $750 4/1 New credit purchase $1,000 The last day of the monthly billing cycle is April 10. Calculate the finance charge.
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...
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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...
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Find the average daily balance for the credit card with the following transactions. Assume one month...
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Register Date Transactions Unpaid Balance April 10 1389.21 April 11 April 12 April 13 April 14...
Register
Date
Transactions
Unpaid Balance
April 10
1389.21
April 11
April 12
April 13
April 14
April 15
April 16
April 17
April 18
April 19
April 20
April 21
April 22
April 23
April 24
April 25
April 26
April 27
April 28
April 29
April 30
May 1
May 2
May 3
May 4
May 5
May 6
May 7
May 8
May 9
Perform the following tasks (continued):
Enter your answers in this column.
At the end...
Assume the following: Melita carried an average daily balance of $937 on her credit card this...
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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...
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.)...
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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...
Calculate the average daily balance and finance charge. (Round your answers to the nearest cent.) $ 1,000 30-day billing cycle Billing date Previous balance Payment Charge: Home Depot Payment 9/16 9/19 9/30 10/3 $ 50 CE 1,000 50 r. 10/7 Cash advance 60 . Finance charge is 1% on average daily balance. Average daily balance Finance charge If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct...
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...
Register
Date
Transactions
Unpaid Balance
April 10
1389.21
April 11
April 12
April 13
April 14
April 15
April 16
April 17
April 18
April 19
April 20
April 21
April 22
April 23
April 24
April 25
April 26
April 27
April 28
April 29
April 30
May 1
May 2
May 3
May 4
May 5
May 6
May 7
May 8
May 9
Perform the following tasks (continued):
Enter your answers in this column.
At the end...
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 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.)...
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