Problem #1. You have a Visa credit card account with a 22.75% annual percentage rate calculated on the average daily balance. The billing date is the first day of each month, and the billing cycle is the number of days in that month. Your credit card balance on June 1 was $307. On June 9th you made a $139 purchase. You made another purchase, a $150 gift card, on June 25th. You made a $250 payment on July 27th. Show your work for all parts of the problem. (a) What is the average daily balance for June? (b) What is your finance charge on the account as of July 1st? (c) What is your new credit card balance?

Q: You have a credit card that charges an interest rate of 1.8% compounded monthly. The table below…

A: WORKINGS-                     December 1 Beginning Balance                          1327.24 LESS-…

Q: Bhupat

A: The objective of this question is to calculate the total balance on the next billing date, which is…

Q: will be received and posted on the 10th of each month. No other charges will be made on the account.…

A: The computation of charges for purchases made with a credit card is the subject of the inquiry.…

Q: Calculate the average daily balance (in $) for October for a revolving credit account with a…

A: Average-Daily-Balance shows an estimate amount that is due or held in an account on daily basis. It…

Q: You have a credit card that charges an interest rate of 15.8% compounded monthly. The table below…

A: Average daily balance refers to the sum average of days and the amount in the credit card account.

Q: On October 26, you plan to purchase a $1,800 computer by using one of your two credit cards. The…

A: A credit card refers to a credit facility that is provided by the banks or financial institutions…

Q: You get a credit card. The bill for $1024 was due on July 1. Purchases of $315 were made on July 7,…

A:

Q: 16. The billing cycle for Mr. Lang´s credit card begins on September 8 and ends on October 7. He is…

A: Given: Credit Card Billing Period: Sept 8  to Oct 7 Previous Balance: $458 Annual Interest Rate: 19%…

Q: Dy using Une of your two črédit cards. The Silver Card charges 18% interest and calculates interest…

A: For Silver card First Payment of 10 th November is $600 Balance   =$1800 - $600 = $1200 second…

Q: On October 24, you plan to purchase a $1,200 computer by using one of your two credit cards. The…

A: (a) Let's first calculate the interest charged by the Silver Card: The…

Q: (a) During the September 20 through October 19 billing period, you pay the minimum required payment…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: You have a Visa credit card account with a 20.98% annual percentage rate calculated on the average…

A: The daily balances on a credit card is summed up and the result is divided by the number of days in…

Q: You get a Department Store Credit Card with a Credit limit of $1000. You make a purchase totaling…

A: Credit, operational, market and liquidity risks are among the most serious threats that banks face.…

Q: Solve the problem. On the January 25 billing date, Vivian had a balance due of $387.19 on her credit…

A:

Q: Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous…

A: Previous Month's Balance = $646.17 Finance = $14.54 Purchases and Cash Advances = $32.45 Payments…

Q: Use the average daily method to find the finance charge on the credit card account for September…

A: Average daily balance is a method in which balance for each day is calculated. Sum of each day…

Q: Suppose that you made three purchases using your credit card during the month of January. The first…

A: Average daily balance represents the balance of the credit card each day on an average depending…

Q: For the credit card account, assume one month between billing dates (with the appropriate number of…

A: Credits cards are now days very common and used by every one and provide short term credit and…

Q: On October 24, you plan to purchase a $1,200 computer by using one of your two credit cards. The…

A: Credit cards are plastic or metal cards used to pay for items or services using credit. Credit cards…

Q: Consider the following credit card activity for the month of September: Date Balance September 1 $0…

A: We need to compute average daily balance to determine the interest rate.

Q: Suppose your VISA card calculates interest using the average daily balance method, and the monthly…

A: "Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: You miss your first payment on the $375 balance. You receive a bill in the mail after 45 days…

A: When you miss your payment, the credit card company charges interest on it. The new balance will be…

Q: Lizzie Gunderson is trying to establish a credit history and applied for a Visa credit card.  She…

A: Establish a credit history: Bank or other financial service company that issues credit cards,…

Q: using a credit card, each time you make a purchase with the credit card, deduct the account. That…

A: Previous balance (10/1): $1,178Credit (10/3): +$3.65 (Assuming this is a credit to her…

Q: On October 24, you plan to purchase a $1,200 computer by using one of your two credit cards. The…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: balance method. The table below shows your activity for the month of July. Date July 1 July 9 July…

A: Credit cards provide short term credit and can be later with interest and credit cards are used now…

Q: Your credit card billing cycle is 10 days. You started your billing cycle with a balance of $500. On…

A: A credit card is an instrument that provides the holder access to debt capital that they can use…

Q: Suppose you have a revolving credit account at an annual percentage rate of 12%, and your previous…

A: New balance is calculated by taking into consideration the previous balance and all the balance…

Q: You pay off your full credit card bill every month. Should you ever borrow up to your credit limit?…

A: Credit card is referred to as the card, which used to allow the person to borrow the funds for…

Credit card

A credit card is provided by financial institutions or banks, which permits a person to borrow money on a preapproved limit for purchases on a credit basis. The credit limit is decided by the institution and bank which issues a credit card depending on the person’s credit score and income. A cardholder can use the card for credit purchases, a balance transfer, cash advances.