Here is Eric's credit card statement for the month of August. Transaction Date Transaction amount August 1 Beginning balance $1500.25 August 10 Purchase $68.09 August 14 Purchase $570.70 August 26 Payment $450.00 (a) Use the credit card statement to help fill in the table below. Note that there are 31 days in August. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. Transaction Unpaid Unpaid Number balance" of days Date Transaction Number of days at that balance amount balance Beginning $1500.25 $1500.25 9 days (from August 1 through $13,502.25 August 1 balance August 9)
Here is Eric's credit card statement for the month of August. Transaction Date Transaction amount August 1 Beginning balance $1500.25 August 10 Purchase $68.09 August 14 Purchase $570.70 August 26 Payment $450.00 (a) Use the credit card statement to help fill in the table below. Note that there are 31 days in August. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. Transaction Unpaid Unpaid Number balance" of days Date Transaction Number of days at that balance amount balance Beginning $1500.25 $1500.25 9 days (from August 1 through $13,502.25 August 1 balance August 9)
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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Transcribed Image Text:Here is Eric's credit card statement for the month of August.
Transaction
Date
Transaction
amount
August 1
Beginning balance
$1500.25
August 10 Purchase
$68.09
August 14 Purchase
$570.70
August 26 Payment
$450.00
(a) Use the credit card statement to help fill in the table below. Note that there are 31 days in August. Also, a purchase
increases the unpaid balance, and a payment decreases the unpaid balance.
Unpaid Number
balance of days
Transaction
Unpaid
Aa
Date
Transaction
Number of days at that balance
amount
balance
9 days (from August 1 through
Beginning
balance
$1500.25 $1500.25
August 1
$13,502.25
August 9)
O days (from August 10 through
August 10 Purchase
$68.09 $1568.34
August 13)
12 days (from August 14 through
August 14 Purchase
$570.70
August 25)
6 days (from August 26 through
August 26 Payment
$450.00
August 31)
Total: 31 days
Total: $
(b) Find the average daily balance. Write your answer to the nearest cent.
(c) Suppose the credit card company charges an interest rate of 1.6% on the average daily balance for August
found in part (b). How much interest will be charged? Write your answer to the nearest cent.
(d) What will Eric's beginning balance be for the month of September (including the interest for August found in
part (c))?
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