KUse the average daily balance method to compute thefinance charge on the credit card account for the month ofAugust (31 days). The starting balance from the previousmonth is $240. The transactions on the account for themonth are given in the table to the right. Assume an annualinterest rate of 20% on the account and that the billing dateis August 1st.The finance charge for the month of August is $(Round to the nearest cent as needed.)DateAugust 5TransactionMade payment of $88August 14Charged $140 for hiking bootsAugust 21Charged $18 for gasolineAugust 25Charged $34 for restaurant meal

The objective of this question is to calculate the finance charge for the month of August using the…

Answered: K Use the average daily balance method…

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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For the credit card account, assume one month between billing dates (with the appropriate nmber of days) and interest of 1.5% per month on the average daly balance Find (a) the average dally balance (b) ehe monthly fitance charge and (c) the account balance for the next billing Previoun Balance $754 56 July 8 July 16 July 25 August 5 Concert tickets Bling Date Paynent Lunch $300 $32 30 (a) The average daly balance is (Round to the tearest cent as needed) (b) The france charge is Round ta the nearest cont as neuded) t The account balance for the net biing is (Round to nearet.cent as neaded)
Calculate the average daily balance (in $) for October for a revolving credit account with a previous month's balance of $120 and the following activity. (Round your answer to the nearest cent.) Date Activity Amount October 3 Cash advance $50.00 October 7 Payment $75.00 October 10 Purchase $27.59 October 16 Credit $20.00 October 25 Purchase $124.60 average daily balance = $
Average Daily Balance Interest Calculation IS The balance on a credit card, that charges a 10.5% APR interest rate, over a 1 month period is given in the following table: Days 1-3: Days 4-20: $200 ($50 purchase) Days 21-30: $50 $150 (initial balance) ($150 payment) What is the finance charge, on the average daily balance, for this card over this 1 month period? finance charge = $ [ ? ] Round to the nearest hundredth. Enter mht©2003 - 2021 Aceļlus Corporation. All Rights Reserved.
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answer to the nearest cent.) $475 balance, 16%, $425 payment; average daily balance method
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Suppose your VISA card calculates interest using the average daily balance method, and the monthly interest rate is 1.75%. The itemized billing for the month of April is shown below. Detail Unpaid balance Charge Charge Charge Payment received Last day of billing period Payment due date Date April 1 April 3 April 11 April 15 April 28 April 30 May 7 (a) Find the average daily balance. $ (b) Find the interest due for this month. $ Amount 95 755 395 890 845 (c) Find the total balance owed on the last day of the billing period. $ (d) This credit card requires a $20 minimum payment or 1/36 of the amount due, whichever is higher. What is the minimum monthly payment due for this month? $
The balance on Ramon Felipe's credit card on January 19, his billing date, was $313.13. For the period ending February 19, Ramon had the following transactions to the right. a) Find the average daily balance for the billing period. b) Find the finance charge to be paid on February 19. Assume an interest rate of 1.2% per month. c) Find the balance due on February 19. a) The average daily balance for the billing period was $ (Round to the nearest cent as needed.) b) The finance charge to be paid on February 19 is $. (Round to the nearest cent as needed.) c) The balance due on February 19 is $. (Round to the nearest cent as needed.) (... January 21 January 25 February 6 February Charge: Restaurant meal Payment Charge: Lawn ornaments 12 Charge: Microwave oven $54.94 $170.00 $57.29 $112.78
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Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answer to the nearest cent.) $600 balance, 18%, $550 payment; average daily balance method

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