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 theaverage daily balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing.Previous Balance: $743.26July 8Billing DateJuly 15PaymentJuly 26LunchAugust 5 Concert tickets$300$45.35$87.57(a) The average daily balance is $(Round to the nearest cent as needed.)

- From July 8 to July 15 (Billing Date): 7 days- From July 15 to July 26 (Payment): 11 days- From…

Answered: For the credit card account, assume one…

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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Calculate the missing information on the revolving credit account. Interest is calculated on the unpaid or previous month's balance. Monthly Periodic Purchases Payments and Cash Advances Annual Finance New Previous Balance Percentage Rate (APR) Charge (in $) and Balance Rate Credits (in $) (as a %) $15.00 12% % $177.40 $45.00
For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.4% 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: $455.28 January 12 Billing Date January 15 Returns January 21 Clothes January 25 Bus tickets February 4 Payment February 7 Flowers $102.86 $117.89 $89.76 $125 $66.36
Suppose you have a revolving credit account at an annual percentage rate of 12%, and your previous monthly balance is $383.79. Find your new balance (in $) if your account showed the following activity. Use the unpaid balance method. (Round your answer to the nearest cent.)
On February 33, the billing date, Carol Ann Bluesky had a balance due of $122.39122.39 on her credit card. Her bank charges an interest rate of 1.25% per month and uses the average daily balance method. She made the transactions described in the table during the month. Feb. 88 Charge: Art supplies $21.2721.27 Feb. 1212 Payment $90.0090.00 Feb. 2323 Charge: Flowers delivered $62.5462.54 Feb. 2525 Charge: Music CD $10.9210.92 a) Find Carol Ann's average daily balance for the billing period from February 33 to March 33. Assume it is not a leap year. b) Find the finance charge to be paid on March 33. c) Find the balance due on March 33. d) Compare the result obtained to those obtained using the previous balance method. Question content area bottom Part 1 a) The average daily balance for the billing period was $enter your response here. (Round to the nearest cent as needed.)
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Calculate the missing information on the revolving credit account. Interest is calculated on the unpaid or previous month's balance. PreviousBalance AnnualPercentageRate (APR) MonthlyPeriodicRate(as a %) FinanceCharge(in $) Purchasesand CashAdvances PaymentsandCredits NewBalance(in $) $1,026.61 1.75% $322.20 $300.00 Step 1 In the credit account statement below, the values of the annual percentage rate (APR), finance charge, and the new balance must be calculated. PreviousBalance AnnualPercentageRate (APR) MonthlyPeriodicRate(as a %) FinanceCharge(in $) Purchasesand CashAdvances PaymentsandCredits NewBalance(in $) $1,026.61 1.75% $322.20 $300.00 Recall that the annual percentage rate (APR) is tied to the monthly periodic rate by the following formula. monthly periodic rate = APR 12 By solving this equation for the APR, the known value for the monthly periodic rate can be substituted to calculate the APR. APR = monthly periodic rate ✕ 12 The…

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