Question

Here is Shen's credit card statement for the month of June. Date Transaction June 1 Beginning balance June 8 Purchase June 21 Purchase June 25 Payment Transaction amount $2600.75 $89.06 $910.90 $750.00 (a) Use the credit card statement to help fill in the table below. Note that there are 30 days in June. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. Date Transaction June 1 Beginning balance June 8 Purchase June 21 Purchase June 25 Payment Transaction Unpaid Number of days at that balance amount balance $2600.75 $2600.75 7 days (from June 1 through June 7) $89.06 $2689.81 | days (from June 8 through June 20) $910.90 $0 4 days (from June 21 through June 24) $750.00 $0 6 days (from June 25 through June 30) Total: 30 days Unpaid Number balance of days $18,205.25 $ $1] $U Total: $0 x 6 ?

Answer 1

Date Transaction Amount 1-Jun Beginning Balance 8-Jun Purchase 21-Jun Purchase 25-Jun Payment $2,600.75 $ 89.06 $ 910.90 $ 750.00 No of Days at the Unpaid Balance x Unaid Balan "balance No.of Days $ 2,600.75 7 $ 18,205.25 $ 2,689.81 13 $ 34,967.53 $ 3,600.71 4 $ 14,402.84 $ 2,850.71 6 $ 17,104.26 30 $ 84,679.88 Average Daily Balance =84,679.88/30 2,822.66 Interest on Average Daily Balance = 2,822.66*1.5% $ 42.34 Beginning Balance for July -2,850.71 - 42.34 2,808.37