John Smith has a credit card that charges 11​% annual interest on the monthly average daily balance for the billing cycle. The current billing cycle has 30 days. For 17 days his balance was ​$2,536.51. For 7 days the balance was ​$1,536.51. And for 6 days the balance was ​$1,895.33. Find the average daily balance. Find the amount of interest.

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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John Smith has a credit card that charges

11​%

annual interest on the monthly average daily balance for the billing cycle. The current billing cycle has

30

days. For

17

days his balance was

​$2,536.51.

For

7

days the balance was

​$1,536.51.

And for

6

days the balance was

​$1,895.33.

Find the average daily balance. Find the amount of interest.

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