Here is Justin's credit card statement for the month of June. Transaction Date Transaction amount June 1 Beginning balance $2500.04 June 9 Payment $840.00 June 23 Purchase $46.35 June 26 Payment $200.00 (a) Use the credit card statement to help fill in the table below. Note that there are 30 days in June. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. Date Transaction Transaction Unpaid amount balance $2500.04 $2500.04 Unpaid Number balance of days X Number of days at that balance 8 days (from June 1 through June 8) Beginning balance June 1 $20,000.32 June 9 Payment $840.00 $1660.04 days (from June 9 through June 22) $0 June 23 Purchase $46.35 $ 3 days (from June 23 through June 25) $0 June 26 Payment $200.00 $ $0 5 days (from June 26 through June 30) Total: 30 days Total: S (b) Find the average daily balance. Write your answer to the nearest cent. $0 (c) Suppose the credit card company charges an interest rate of 1.4% on the average daily balance for June found in part (b). How much interest will be charged? Write your answer to the nearest cent. (d) What will Justin's beginning balance be for the month of July (including the interest for June found in part (c))? $0

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
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Here is Justin's credit card statement for the month of June.
Transaction
Date
Transaction
amount
June 1
Beginning balance
$2500.04
June 9
Payment
$840.00
June 23
Purchase
$46.35
June 26 Payment
$200.00
(a) Use the credit card statement to help fill in the table below. Note
that there are 30 days in June. Also, a purchase increases the
unpaid balance, and a payment decreases the unpaid balance.
Date
Transaction
Unpaid Number
balance of days
Transaction Unpaid
amount balance
$2500.04 $2500.04
Number of days at that balance
8 days (from June 1 through June
8)
Beginning
balance
June 1
$20,000.32
June 9
Payment
$840.00 $1660.04
days (from June 9 through
June 22)
June 23 Purchase
$46.35 $0
3 days (from June 23 through
June 25)
June 26 Payment
$200.00
$0
$
5 days (from June 26 through
June 30)
Total: 30 days
Total: $
X
(b) Find the average daily balance. Write your answer to the nearest cent.
$0
(c) Suppose the credit card company charges an interest rate of 1.4% on
the average daily balance for June found in part (b). How much
interest will be charged? Write your answer to the nearest cent.
$0
(d) What will Justin's beginning balance be for the month of July (including
the interest for June found in part (c))?
$0
S ?
X
8 EO
Ed
D
18
Transcribed Image Text:Here is Justin's credit card statement for the month of June. Transaction Date Transaction amount June 1 Beginning balance $2500.04 June 9 Payment $840.00 June 23 Purchase $46.35 June 26 Payment $200.00 (a) Use the credit card statement to help fill in the table below. Note that there are 30 days in June. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. Date Transaction Unpaid Number balance of days Transaction Unpaid amount balance $2500.04 $2500.04 Number of days at that balance 8 days (from June 1 through June 8) Beginning balance June 1 $20,000.32 June 9 Payment $840.00 $1660.04 days (from June 9 through June 22) June 23 Purchase $46.35 $0 3 days (from June 23 through June 25) June 26 Payment $200.00 $0 $ 5 days (from June 26 through June 30) Total: 30 days Total: $ X (b) Find the average daily balance. Write your answer to the nearest cent. $0 (c) Suppose the credit card company charges an interest rate of 1.4% on the average daily balance for June found in part (b). How much interest will be charged? Write your answer to the nearest cent. $0 (d) What will Justin's beginning balance be for the month of July (including the interest for June found in part (c))? $0 S ? X 8 EO Ed D 18
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