Here is Ahmad's credit card statement for the month of November. Transaction Date Transaction amount November 1 Beginning balance $1500.03 November 15 Payment $540.00 November 21 Purchase $28.85 November 25 Payment $200.00 (a) Use the credit card statement to help fill in the table below. Note that there are 30 days in November. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. Transaction Unpaid Number of days at that Unpaid Number balance" of days Date Transaction amount balance balance 14 days (from November 1 Beginning balance $1500.03 $1500.03 November 1 $21,000.42 through November 14) O days (from November 15 November 15 Payment $540.00 $960.03 through November 20) November 21 Purchase $28.85 4 days (from November 21 through November 24) November 25 Payment $200.00 6 days (from November 25 through November 30) Total: 30 days Total: SI (b) Find the average daily balance. Write your answer to the nearest cent. (c) Suppose the credit card company charges an interest rate of 1.4% on the average daily balance for November found in part (b). How much interest will be charged? Write your answer to the nearest cent. (d) What will Ahmad's beginning balance be for the month of December (including the interest for November found in part (c))?
Here is Ahmad's credit card statement for the month of November. Transaction Date Transaction amount November 1 Beginning balance $1500.03 November 15 Payment $540.00 November 21 Purchase $28.85 November 25 Payment $200.00 (a) Use the credit card statement to help fill in the table below. Note that there are 30 days in November. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. Transaction Unpaid Number of days at that Unpaid Number balance" of days Date Transaction amount balance balance 14 days (from November 1 Beginning balance $1500.03 $1500.03 November 1 $21,000.42 through November 14) O days (from November 15 November 15 Payment $540.00 $960.03 through November 20) November 21 Purchase $28.85 4 days (from November 21 through November 24) November 25 Payment $200.00 6 days (from November 25 through November 30) Total: 30 days Total: SI (b) Find the average daily balance. Write your answer to the nearest cent. (c) Suppose the credit card company charges an interest rate of 1.4% on the average daily balance for November found in part (b). How much interest will be charged? Write your answer to the nearest cent. (d) What will Ahmad's beginning balance be for the month of December (including the interest for November found in part (c))?
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
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education