Question 11Use the average daily balance method to compute the finance charge on the credit card account for the previous month. Thestarting balance and transactions on the account for the month of April are given to the right. Assume an annual interest rate of18%Month:April (30 days); previous month's balance: $210April 11Charged $67 for a coatApril 15Made payment of $120April 22Charged $107 for DVDsApril 26 Charged $19 for groceriesThe finance charge is $(Round to the nearest cent as needed.)

PeriodAmount1 April$21011 April$6715 April-$12022 April$10726 April$19Interest rate = 18%

Answered: Question 11 Use the average daily…

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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In problems 3 through 8, complete the table one entry at a time by filling in the amount that goes where the red star is. Use the unpaid balance method to calculate interest. Assume an 18% annual interest rate. Unpaid Balance at Beginning of Month Unpaid Balance Purchases Purchases Payments at End of Month Finance Month Charge June $350.10 $ 25.00 $36.75 $ 75.00 July $150.40 $ 0 $200.00 August $208.75 $55.40 $150.00
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Try Yourself - Question 2 Consider the following purchase history during October: Date Balance # of Days October 1 $110 8 October 9 $150 5 October 14 $260 8 October 22 $347 7 October 29 $612 3 The APR for this card is 16.45%. If the balance is not paid within the grace period, what is the total owed to the credit card company for this month? A. $261 B. $869 C. $616 D. $612 E. $704
Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 27%. Complete the account activity table for Kathy. (Round your answers to the nearest cent.) Previous Finance Purchases New Balance End of Month Month's and Cash Advances Payments and Credits Month Charge (in $) Balance (in $) (in $) April $642.17 $14.45 $39.45 $85.00 $611.07 May $ $ $289.33 $145.00 $
Use the unpaid balance method to find the finance charge on the credit card account for April. The starting balance from the previous month is $200. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 18% on the account and that the billing date is April 1st. ..... Date Transaction April 3 Charged $125 for a coat April 11 Made payment of $142 April 21 Charged $34 for DVDs April 28 Charged $25 for groceries The finance charge for the month of April is $enter your response here.
QUESTION 2 Use the average daily method to find the finance charge on the credit card account for September (that will appear on the October bill). The starting balance from the previous month is 280$. The transactions on the account for the month are given below. Assume an annual interest rate of 29% on the account and that the billing date is October 1st. September has 30 days. The starting balance is 280$ Charged $123 Made a payment of $ 350 Returned a T-shirt $251 Charged $89 September 1 September 3 September 10 September 13 September 22 The finance charge is $ (Round the answer to nearest cent as needed. Type dollars and cents in the two given blanks.)
3. Use the unpaid balance method to find the finance charge on the credit card account for August. The starting balance from the previous month is $220. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 16% on the account and that the billing date is August 1st. The finance charge for the month of August is $ (Round to the nearest cent as needed.) Date August 7 August 13 August 19 August 31 Transaction Made payment of $89 Charged $140 for hiking boots Charged $22 for gasoline Charged $34 for restaurant meal
Use the unpaid balance method to find the finance charge on the credit card account for August. The starting balance from the previous month is $240. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 21% on the account and that the billing date is August 1st.
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