For the credit card account below, compute the average daily balance, the finance charge, and the account balance for the next billing. Assume the cycle ends on the same date each month and that the interest rate is 9% per month. Previous Balance plus Interest: $528 April 8 First Day of the Billing Cycle April 13 Returns $95 April 19 Payment $113 April 20 Clothes $37 May 2 Groceries $99 May 5 Cash Advance $128 Average Daily Balance: Monthly Finance Charge: Account Balance for the Next Billing:

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
Question
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For the credit card account below, compute the average daily balance, the finance charge, and the
account balance for the next billing. Assume the cycle ends on the same date each month and that the
interest rate is 9% per month.
Previous Balance plus Interest: $528
April 8
First Day of the Billing Cycle
April 13
Returns
$95
April 19
Payment
$113
April 20 Clothes
$37
May 2
Groceries
$99
May 5
Cash Advance
$128
Average Daily Balance:
Monthly Finance Charge:
Account Balance for the Next Billing:
Transcribed Image Text:For the credit card account below, compute the average daily balance, the finance charge, and the account balance for the next billing. Assume the cycle ends on the same date each month and that the interest rate is 9% per month. Previous Balance plus Interest: $528 April 8 First Day of the Billing Cycle April 13 Returns $95 April 19 Payment $113 April 20 Clothes $37 May 2 Groceries $99 May 5 Cash Advance $128 Average Daily Balance: Monthly Finance Charge: Account Balance for the Next Billing:
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