A credit card has a monthly rate of 2.20% and uses the average daily balance method for calculatin interest. Here are some of the details in the June 1 - June 30 itemized billing: June 1 Unpaid Balance: $418.44 Payment Received June 15: $180.00 Purchases Charged to the Account: $211.42 Average Daily Balance: $289.00 Last Day of the Billing Period: June 30 Payment Due Date: July 9 Minimum payment terms are shown below. New Balance Minimum Payment $0.01 to $10.00 No payment due $10.01 to $200.00 $10.00 $200.01 to $250.00 $15.00 $250.01 to $300.00 $20.00 $300.01 to $350.00 $25.00 $350.01 to $400.00 $30.00 $400.01 to $450.00 $35.00 $450.01 to $500.00 $40.00 Over $500.00 1/10 of new balance What is the minimum payment due by July 9? O $40.00 O $35.00 $45.98 $44.99
A credit card has a monthly rate of 2.20% and uses the average daily balance method for calculatin interest. Here are some of the details in the June 1 - June 30 itemized billing: June 1 Unpaid Balance: $418.44 Payment Received June 15: $180.00 Purchases Charged to the Account: $211.42 Average Daily Balance: $289.00 Last Day of the Billing Period: June 30 Payment Due Date: July 9 Minimum payment terms are shown below. New Balance Minimum Payment $0.01 to $10.00 No payment due $10.01 to $200.00 $10.00 $200.01 to $250.00 $15.00 $250.01 to $300.00 $20.00 $300.01 to $350.00 $25.00 $350.01 to $400.00 $30.00 $400.01 to $450.00 $35.00 $450.01 to $500.00 $40.00 Over $500.00 1/10 of new balance What is the minimum payment due by July 9? O $40.00 O $35.00 $45.98 $44.99
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A credit card has a monthly rate of 2.20% and uses the average daily balance method for calculatin
interest. Here are some of the details in the June 1 - June 30 itemized billing:
June 1 Unpaid Balance: $418.44
Payment Received June 15: $180.00
Purchases Charged to the Account: $211.42
Average Daily Balance: $289.00
Last Day of the Billing Period: June 30
Payment Due Date: July 9
Minimum payment terms are shown below.
New Balance
Minimum Payment
No payment due
$10.00
$15.00
$20.00
$0.01 to $10.00
$10.01 to $200.00
$200.01 to $250.00
$250.01 to $300.00
$300.01 to $350.00
$25.00
$350.01 to $400.00
$30.00
$400.01 to $450.00
$35.00
$450.01 to $500.00
$40.00
Over $500.00
1/10 of new balance
What is the minimum payment due by July 9?
O $40.00
O $35.00
O $45.98
O $44.99
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