For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.1% 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: $479.66 January 10 Billing Date January 16 Returns January 21 Clothes January 27 Bus tickets February 4 Payment February 8 Flowers $104.46 $137.32 $86.61 $125 $63.35 (a) The average daily balance is $ (Round to the nearest cent as needed.) (b) The finance charge is $ (Round to the nearest cent as needed.) (c) The account balance for the next billing is $ (Round to the nearest cent as needed.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A) Find the average daily balance B) Find the monthly finance charge C) Find the account balance fot the next billing
For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.1% 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: $479.66
January 10 Billing Date
January 16 Returns
January 21 Clothes
January 27 Bus tickets
February 4 Payment
February 8 Flowers
$104.46
$137.32
$86.61
$125
$63.35
(a) The average daily balance is $.
(Round to the nearest cent as needed.)
(b) The finance charge is $
(Round to the nearest cent as needed.)
(c) The account balance for the next billing is $
(Round to the nearest cent as needed.)
Transcribed Image Text:For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.1% 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: $479.66 January 10 Billing Date January 16 Returns January 21 Clothes January 27 Bus tickets February 4 Payment February 8 Flowers $104.46 $137.32 $86.61 $125 $63.35 (a) The average daily balance is $. (Round to the nearest cent as needed.) (b) The finance charge is $ (Round to the nearest cent as needed.) (c) The account balance for the next billing is $ (Round to the nearest cent as needed.)
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