If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 12% APR and the following transactions? 28-day billing cycle 1-October Previous balance $ 1,168 3-October Credit $ 75.00 12-October Charge: King Soopers $ 152.00 15-October Payment $ 350.00 25-October Charge: Delta $ 325.00 30-October Charge: Holiday Fun $ 65.00 APR 12% Required: Using the information above, complete the following table and questions Number of days of current balance Current balance Extension 2 $ 1,168.00 9 3 10 5 2 What is the total extension amount? What is the average daily balance? What is the total number of days of current balance? What is her periodic rate? What is her total finance charge? What is the total owed?
If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 12% APR and the following transactions? 28-day billing cycle 1-October Previous balance $ 1,168 3-October Credit $ 75.00 12-October Charge: King Soopers $ 152.00 15-October Payment $ 350.00 25-October Charge: Delta $ 325.00 30-October Charge: Holiday Fun $ 65.00 APR 12% Required: Using the information above, complete the following table and questions Number of days of current balance Current balance Extension 2 $ 1,168.00 9 3 10 5 2 What is the total extension amount? What is the average daily balance? What is the total number of days of current balance? What is her periodic rate? What is her total finance charge? What is the total owed?
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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If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 12% APR and the following transactions?
| 28-day billing cycle | ||
| 1-October | Previous balance | $ 1,168 |
|---|---|---|
| 3-October | Credit | $ 75.00 |
| 12-October | Charge: King Soopers | $ 152.00 |
| 15-October | Payment | $ 350.00 |
| 25-October | Charge: Delta | $ 325.00 |
| 30-October | Charge: Holiday Fun | $ 65.00 |
APR 12%
Required:
Using the information above, complete the following table and questions
| Number of days of current balance | Current balance | Extension |
|---|---|---|
| 2 | $ 1,168.00 | |
| 9 | ||
| 3 | ||
| 10 | ||
| 5 | ||
| 2 |
- What is the total extension amount?
- What is the average daily balance?
- What is the total number of days of current balance?
- What is her periodic rate?
- What is her total finance charge?
- What is the total owed?
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