Jennifer is charged interest of 19.99% per annum on her credit card.Dec-01 Jennifer withdrew $500 as a cash advance from her credit card.Jennifer received her credit card statement, showing a minimum balance owing ofDec-31$10, due by January 12Jan-12 Jennifer paid the minimum balance of $10Feb-12 Jennifer paid the minimum balance of $10Mar-12 Jennifer paid the minimum balance of $10Apr-01 Jennifer paid the full balance owinga) Compute the amount of interest charged during the month of December.500* 19.99% * 31/365 = 8.48Inrerest from 1st Jan to 11 Jan = 500 * 19.99% * 11/365 = 3.01Total Interest till 12 Jan (8.48 +3.01) = 11.49Net principal paid (11.49 - 10) = 1.497 b)What is the balance owing at the end of January?_8BEGINNING BALANCE (500-1.4)* 19.99% * (31-11)/36519LESS DEPOSIT20RATE21T=22INEREST23BALANCE2425 c)What is the balance owing at the end of February?26LESS DEPOSIT27RATE28T=29INEREST30BALANCE31 d) What is the balance owing at the end of March?LESS DEPOSITRATE323334T=35INEREST36BALANCE37383940

Given that amount in the month of December = $ 8.48 Interest from 1st Jan to 11th Jan Beginning…

Jennifer is charged interest of 19.99% per annum on her credit card. Dec-01 Jennifer withdrew $500 as a cash advance from her credit card. Jennifer received her credit card statement, showing a minimum balance owing of Dec-31 $10, due by January 12 Jan-12 Jennifer paid the minimum balance of $10 Feb-12 Jennifer paid the minimum balance of $10 Mar-12 Jennifer paid the minimum balance of $10 Apr-01 Jennifer paid the full balance owing

Jennifer is charged interest of 19.99% per annum on her credit card. Dec-01 Jennifer withdrew $500 as a cash advance from her credit card. Jennifer received her credit card statement, showing a minimum balance owing of Dec-31 $10, due by January 12 Jan-12 Jennifer paid the minimum balance of $10 Feb-12 Jennifer paid the minimum balance of $10 Mar-12 Jennifer paid the minimum balance of $10 Apr-01 Jennifer paid the full balance owing

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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