For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.6% per month on the average daily balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing. Previous Balance: $464.30 January 12 Billing Date January 16 Returns January 21 Clothes January 26 Bus tickets February 4 Payment February 7 Flowers $102.74 $113.66 $69.74 $105 $67 29 (a) The average daily balance is S (Round to the nearest cent as needed.) (b) The finance charge is S (Round to the nearest cent as needed.) (c) The account balance for the next billing is S (Round to the nearest cent as needed.)

For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.6% per month on the average daily balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing. Previous Balance: $464.30 January 12 Billing Date January 16 Returns January 21 Clothes January 26 Bus tickets February 4 Payment February 7 Flowers $102.74 $113.66 $69.74 $105 $67 29 (a) The average daily balance is S (Round to the nearest cent as needed.) (b) The finance charge is S (Round to the nearest cent as needed.) (c) The account balance for the next billing is S (Round to the nearest cent as needed.)

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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Consider the following credit card activity for the month of September: Date Balance September 1 $0 September 7 $331 September 13 $935 September 21 $1,552 September 25 $ 2,208 If this card's annual APR is 20.9% and the September balance is not paid during the grace period, how much interest is owed for September? There are 30 days in September. Round your answer to the nearest dollar.
Use the average daily balance method to compute the finance charge on the credit card account for the month of August (31 days). The starting balance from the previous month is $300. The transactions on the account for the month are given inthe table to the right. Assume an annual interest rate of 25% on the account and that the billing date is August 1. August 4 made payment of $94.August 14 charged $140 for hiking boots August 17 charged $18 for gasoline August 29 charged $31 for restaurant meal. What is the finance charge for August?
Use the unpaid balance method to find the finance charge on the credit card account. Last month's balance, the payment, the annual interest rate, and any other transactions are given. Last month's balance, $400 Payment, $350 Interest rate, 16.7% Bought plane ticket, $100 Bought luggage, $135 Paid hotel bill, $195
Problem #1. You have a Visa credit card account with a 26.49% annual percentage rate calculated on the average daily balance. The billing date is the first day of each month, and the billing cycle is the number of days in that month. Your credit card balance on April 1 was $552. On April 10th you made a $119 purchase. You made another purchase, a $25 gift card, on April 24th. You made a $150 payment on April 29th. Show your work for all parts of the problem. (a) What is the average daily balance for April? (b) What is your finance charge on the account as of May 1st? (c) What is your new credit card balance?
Suppose your MasterCard calculates interest using the average daily balance method, and the monthly interest rate is 2.4%. The itemized billing for the month of August is shown below. Detail Date Amount Unpaid balance August 1 635 Charge August 9 470 Charge August 10 860 Charge August 18 275 Payment received August 25 665 Last day of billing period August 31 Payment due date September 7 (a) Find the average daily balance. $ (b) Find the interest due for this month. $ (c) Find the total balance owed on the last day of the billing period. $ (d) This credit card requires a $15 minimum payment or 1/24 of the amount due, whichever is higher. What is the minimum monthly payment due for this month?
For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.2% per month on the average daily balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing. Previous Balance: $743.26 July 8 Billing Date July 15 Payment July 26 Lunch August 5 Concert tickets $300 $45.35 $87.57 (a) The average daily balance is $ (Round to the nearest cent as needed.)
3. Calculate the average billing daily balance for each of the monthly statements for the following revolving credit accounte assume a 30-day billing cycle: Billing date Payment amount Charge date(s) Charge amount(s) Average daily balance Previous Payment date 332.03 balance 4/29 $56 $35 a. 4/10 b. 6/15 $329 4/25 $25 6/26 6/30 $573 6/25 $60 $72 $12.50 $108 c. 9/15 $335.50 9/20 $33.55 9/25 9/26 find the finance charge for each monthly statement (problem 3) if the annual percentage rate is 15%
For the credit card account below, compute the average daily balance, the finance charge, and the account balance for the next billing. Assume the account is billed on the same date each month and that the annual interest rate is 18%. This credit card company calculates the finance charge on the average daily balance, but they consider each month of a year instead of using the number of days in the month. 12 Previous Balance: $1045 March 15 Billing Date March 23 Flowers $106 March 30 Payment $81 April 1 Groceries $86 April 8 Returns $50 April 11 Concert Tickets $138 Average Daily Balance: Finance Charge: Account Balance for the Next Billing:
B.) The activity on Charlie Wilson's Visa account for one billing period is shown below. Find the average daily balance and the finance charge if the billing period is November 11 through December 10, the previous balance was $645.33, and the annual interest rate is 20%. November 15 payment $125.00 November 28 office supplies $24.97 December 1 toy store $317.52 average daily balance $ finance charge $
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $200 balance, 17%, $50 payment (a) previous balance method$ (b) adjusted balance method$ (c) average daily balance method
For the credit card account below, compute the average daily balance, the finance charge, and the account balance for the next billing. Assume the billing cycle bogins on the same date each month and that the interest rate is 16% per month. Previous Balance plus Interest: $1030 April 1 First Day of the Billing Cycle $1030 April 12 Puchase Clothes 569 April 15 Online Purchase $123 April 17 Returns $41 April 27 Purchase Flowers $29 April 28 Payment 5132 Average Daily Balance: Monthly Finance Charge: Account Balance for the start of the Next Billing:
Use the average daily balance method to compute the finance charge on the credit card account for the month of August (31 days). The starting balance from the previous month is $300. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 22% on the account and that the billing date is August 1st.

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