Jerry Allison starts the month with a balance on his credit card of $1,050. On the 10th day of the month, he purchases $400 in clothes with his credit card. On the 15th day of the month he makes a payment on his credit card of $450. The bank charges 1.5 percent interest per month using the previous balance method. What would Jerry's finance charges be for the month?

Jerry Allison starts the month with a balance on his credit card of $1,050. On the 10th day of the month, he purchases $400 in clothes with his credit card. On the 15th day of the month he makes a payment on his credit card of $450. The bank charges 1.5 percent interest per month using the previous balance method. What would Jerry's finance charges be for the month?

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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On October 24, you plan to purchase a$1500 computer by using one of your two credit cards. The Silver Card charges 18% interest and calculates interest based on the balance on the first day of the previous month. The Gold Card charges 18% interest and calculates interest based on the average daily balance. Both cards have a s0 balance as of October 1. The closing date is the end of the month for each card. Your plan is te make a 00 payment in November, make a500 payment in December, and pay off the remaining balance in January, All your payments will be received and posted en the 1oth of each month. No other tharges will be made on the acount. (Round your answers to the nearest cent.) (a) Based on this information, calculate the interest (in s) charged by each card for this purchase Silver Card Gold Card (b) Which card is the better deal and by how much (in $)7 The Goid Card s the better deal by s49 02
Please provide answer
Kevin Devlin's credit card company determines his minimum monthly payment by taking 1.25% of any outstanding principal and adding it to any interest charges then rounding up to the nearest dollar. The credit card company charges an interest rate of 0.089% per day on previous balances. On November 12, Kevin used his credit card to pay for the following business expenses: van repairs ($653), equipment maintenance ($275), office supplies ($164), and dinner with clients ($112). (1) Assuming Kevin had no previous balance, determine his minimum payment due on December 1, his billing date. (ii) On December 1, instead of making his minimum payment, found in part (i). Kevin makes a payment of $400. Assuming there are no additional charges, determine Kevin's minimum payment on January 1.
n August 1, Felix’s credit card has a balance of $1,125.25. According to the terms of the card’s lending agreement, an interest rate of 14% per year is assessed and the monthly finance charges are calculated using the Average Daily Balance (ADB) including purchases method. During the month, Felix expects to make the purchases listed below and will make a payment of $84.39 on August 23, and has collected the following additional information: Date Purchases August 6 $245.31 August 13 1,940.83 August 21 130.41 August 26 212.85 Additional Information Monthly interest rate 1.17% Beginning card balance $1,125.25 Days in the month 31 Use the following table to help Felix estimate his monthly interest charge for August. Dates Number of Days Daily Balance Calculated Value 8/2 - 8/6 5 $1,125.25 $ 8/7 - 8/13 7 8/14 - 8/21 8 8/22 - 8/23 2 8/24 - 8/26 3 8/27 - 8/1 6 $ Total 31 Average Daily Balance With Purchases $ Finance Charge $ One way by which Felix can increase his finance…
On October 25, you plan to purchase a $1,500 computer by using one of your two credit cards. The Silver Card charges 18% interest and calculates interest based on the balance on the first day of the previous month. The Gold Card charges 18% interest and calculates interest based on the average daily balance. Both cards have a $0 balance as of October 1. The closing date is the end of the month for each card. Your plan is to make a $500 payment in November, make a $500 payment in December, and pay off the remaining balance in January. All your payments will be received and posted on the 10th of each month. No other charges will be made on the account. (Round your answers to the nearest cent.) (a) Based on this information, calculate the interest (in $) charged by each card for this purchase. Silver Card Gold Card $7 $ 7.6 X (b) Which card is the better deal and by how much (in $)? The ---Select--- is the better deal by $
Which one?
Cheng has accumulated $2,405 in debt on his credit card. The card has an APR of 17.86 percent. Cheng is creating a plan to become debt-free. He wants to know how much he should pay each month to pay off his credit card in 2 years. Use Excel to compute Cheng's monthly payment.
On May 6, Jim Ryan borrowed $14,000 from Lane Bank at 7 1/2% interest. Jim plans to repay the loan on March 11. Assume the loan is on ordinary interest. How much will Jim repay on March 11? (Use Days in a year table.) (Round your answer to the nearest cent.) Jim Repay
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On September 8, Bert Sarkis joined a Christmas club. His bank will automatically deduct $50 from his checking account at the end of each month and deposit it into his Christmas club account, where it will earn 8% interest. The account comes to term on December 1.(a) Find the future value of the account, using an annuity formula. (Round your answer to the nearest cent.)$ (b) Find the future value of the account, using the compound interest formula. (Round your answer to the nearest cent.)$ (c) Find Bert's total contribution to the account.$ (d) Find the total interest. (Round your answer to the nearest cent.)$

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