Shiing Shen Chern's credit card company determines his minimum monthly payment by adding all new interest to 1% of the outstanding principal. The credit card company charges an interest rate of 0.037437% per day. On March 15, Shiing uses his credit card to purchase airline tickets for his family for $2300. He makes no other purchases during March. Use the given information and the rule that minimum payments are rounded up to the nearest dollar to answer parts a and b below. a) Assuming Shiing had no new interest, determine Shiing's minimum payment due on April 1, his billing date. Shiing's minimum payment due on April 1 is $

Shiing Shen Chern's credit card company determines his minimum monthly payment by adding all new interest to 1% of the outstanding principal. The credit card company charges an interest rate of 0.037437% per day. On March 15, Shiing uses his credit card to purchase airline tickets for his family for $2300. He makes no other purchases during March. Use the given information and the rule that minimum payments are rounded up to the nearest dollar to answer parts a and b below. a) Assuming Shiing had no new interest, determine Shiing's minimum payment due on April 1, his billing date. Shiing's minimum payment due on April 1 is $

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...

See similar textbooks

Related questions

Q: Arnold Brown has a Visa Card with an annual percentage rate of 18.0%. The unpaid balance for his…

A: In unpaid balance method, the interest for credit card is computed irrespective of transactions made…

Q: On August 2, Jun Co. receives a $6,100, 90-day, 12.5% note from customer Ryan Albany as payment on…

A: Notes receivable applies to the claims on which structured financial instruments, such as promissory…

Q: Arnold Brown has a Visa Card with an annual percentage rate of 19.2%. The unpaid balance for his…

A: Finance Charge: It refers to the amount of interest you'll pay on a loan, and it's most commonly…

Q: i's credit card company nimum monthly payment by adding 1% of the outstanding principal. mpany…

A: Credit cards are used now days but there are heavy interest to be paid on that and interest is…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Interest on note = Notes payable x interest payable x no. of days/365 = 34,560*10%*45/360 = $432

Q: Arnold Brown has a Visa Card with an annual percentage rate of 16.8%. The unpaid balance for his…

A: Annual percentage rate = 16.8% Unpaid balance of billing cycle = $1,406.25 Cost of printer…

Q: a) Assuming Shing had no new interest, determine Shing's minimum payment due on April 1, his billing…

A: The minimum payment that Shing has to make is the 1% of the outstanding principal and interest on…

Q: The due date on Gabrielle's credit card is the 8th day of each month. Gabrielle's unpaid credit card…

A: Balance on July 8th is $2,750 Additional Charges during month is $320 Payment during month is $400…

Q: Jerry Allison starts the month with a balance on his credit card of $1,050. On the 10th day of the…

A: In Previous Balance Method, unpaid balance at start of billing cycle is used to compute finance…

Q: Arnold Brown has a Visa Card with an annual percentage rate of 18.0%. The unpaid balance for his…

A: The finance charge is the cost of the unpaid balance. The balance of the credit card is adjusted for…

Q: Shiing Shen Chern's credit card company determines his minimum monthly payment by adding all new…

A: Interest rate = 1% Purchase from credit card = $3,600Outstanding balance at month end = $3,600

Q: Peyton has a Home Depot credit card. The card has a balance of $4456.39 with an APR of 28.79%. The…

A: Here, Card Balance is $4,456.39 APR is 28.79% Minimum Payment is 3.8% of the Balance.

Q: 14, Gracie Paul accepted a $60,000, 6%, 160-day note from Mike Lang. On November 12, Gracie…

A: Notes are issued at the discount and this discount is interest on the note and proceed from note is…

Q: What would Jerrod's finance charges be for the month?

A: A credit card is a type of financial instrument that permits users to borrow money for purchases or…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: The journal entries are prepared to record daily transactions of the business.

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: Arnold Brown has a Visa Card with an annual percentage rate of 19.2%. The unpaid balance for his…

A: Unpaid balance method ascertains the finance charge on the previous balance outstanding i.e., the…

Q: Mr. Smith did not pay his full credit card balance on June 5th, the due date each month for payment.…

A: Interest charge refers to an amount that is being charged on the balance amount over the period that…

Q: In the month of September, Billy Jo made the following purchases: $4,000.00 on September 3…

A: Data given: Previous balance=Nil APR=15% Minimum payment=2% Details of purchases Date Amount…

Q: Flip opened a credit card account. During the first month he purchased new cloths that totaled…

A: Purchase made on credit card: $1,505.57.Monthly decrease in balance: 1.9%

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Interest on notes = face value of notes x rate of interest x no. Of days/360 = 37440*8%*30/360 =…

Q: Arnold Brown has a Visa Card with an annual percentage rate of 19.2%. The unpaid balance for his…

A: Monthly Interest Rate=Annual Interest RateNo. of periods in a year=19.2%12=1.6% a) Finance…

Q: On November 1st, Ben owes $800 on his credit card. On November 5th, Ben pays $60 towards the…

A: For calculating average daily balance of card , we need to calculate the daily cash balance and then…

Q: Kevin Devlin's credit card company determines his minimum monthly payment by taking 1.25 % of any…

A: Interest charges indicate the additional rate charged by the lender over the principle amount.

Q: A credit card company determines a card holder's minimum monthly payment by adding all new interest…

A: The total outstanding balance as of November 10th is $1,376 (van repairs ($654) + equipment…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Interest on note = face value of the note x rate of interest x no. Of days/360 = (48960-4000)…

Question

Shiing Shen Chern's credit card company determines his minimum monthly payment by adding all new interest to 1%
of the outstanding principal. The credit card company charges an interest rate of 0.037437% per day. On March 15,
Shiing uses his credit card to purchase airline tickets for his family for $2300. He makes no other purchases during
March. Use the given information and the rule that minimum payments are rounded up to the nearest dollar to answer
parts a and b below.
a) Assuming Shiing had no new interest, determine Shiing's minimum payment due on April 1, his billing date.
Shiing's minimum payment due on April 1 is $

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

On April 1, instead of making the minimum payment, Shiing makes a payment of

$700. Assuming there are no additional charges or cash advances, determine Shiing's minimum payment due on May 1.

Solution

by Bartleby Expert

SEE SOLUTION

Similar questions

Peyton has a Home Depot credit card. The card has a balance of $4456.39 with an APR of 28.79%. The Home Depot expects the minimum payment to be 3.8% of the balance. What is Peyton’s minimum payment? How long will it take Peyton to pay off his Home Depot credit card? How much interest will Peyton pay if he only pays the minimum payment?Minimum payment Months to payoff Interest
Troy already had a balance of $104.75 on his credit card when he used it to purchase items totalling $128.37. His minimum monthly payment is 4% of the balance or $20, whichever is greater, and the interest is 18.7%, compounded daily. a) How long will it take Troy to pay off the balance if he pays only the minimum? b)How much interest will he pay?
Jake owes $3,990 on a credit card with an APR of 13.9 percent. How much more will it cost him to pay off this balance if he makes monthly payments of $50 rather than $70? Assume he does not charge any further purchases. O $4,647 O $2,811 O $3.648 O $2,018 O $3,545
Everlyne has a personal LOC with her bank with a maximum credit limit of $9,000.00. The interest rate is prime plus 1.5%, and the current prime rate is 4.75%. Regardless of any account transaction activity, her bank requires on the first of every month for her to pay "the greater of 5% of the current balance or $100" from her checking account. She is allowed to exceed her maximum credit limit, but if she does the entire balance is subject to 22% interest until such time as the balance is restored below the credit limit. On October 1, the opening balance on her LOC was $2,200.00. She took advances of $4,000.00, $3,800.00, and $3,200.00 on October 21, November 16, and December 1, respectively. She made payments of $4,300.00, $3,200.00, and $3,500.00 on November 1, November 21, and December 10, respectively. The prime rate decreased by 0.75% on November 7. Complete the repayment schedule below by filling in the interest charges for October, November, and December. Date Balance Annual…
Joelle prefers to pay by credit card, but her card was declined. She B returns home to call her bank. They informed her that her credit limit using this card is $300. The credit card she has currently charges a 19.2% annual interest rate compounded monthly. The table to the right shows the balance, 8, of her account after m months. 100 119.2 142.09 169.37 4 201.89 15 240.65 286.85 Question 2A: Based on the information given, why might Joelle not have been able to use her credit card at Target? Part B: For each time period below, determine the rate of change: month 1 to month 2 month 2 to month 3 month 4 to month 6 month 3 to month 5 The time period with the greatest rate of change is: Part C: What do you notice about the average rate of change in this scenario? What does this indicate about the function we are working with? Please explain your response.
Jane has a credit card balance of $21,000. The annual interest rate is 20%. She is required to pay a minimum of 4% of the outstanding balance, but never less than $40. How many months will it take to pay off the credit card balance if she pays $25 in addition to the required minimum payments? You must show your work on an Excel spreadsheet and place in the designated dropbox. 119 163 102 201
) Signe owes $19,561 on her credit card. Calculate the monthly payment if the credit card APR is 18% and Signe pays it off in three years. Assume no additional charges are made to the card. LSS-Comp SP LSS-Cont O O LP
Travis Thompson uses his credit card to obtain a cash advance of $600 to pay for his textbooks in medical school The interest rate charged for the loan is 0.05645% per day. Travis repays the money plus the interest after 28 days a) Determine the interest charged for the cash advance. b) When he repaid the loan, how much did he pay the credit card company? Interest charged $ (Round to the nearest cent.)
Sidney took a cash advance of $200 by using checks linked to her credit card account. The bank charges a cash advance fee of 2 percent on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived. a. What was the cash advance fee? b. What was the interest for one month at an APR of 18 percent? c. What was the total amount she paid? d. What if she had made the purchase with her credit card and paid off her bill in full promptly? Assume the credit card has a 30-day grace period.
Jennifer Richards went to her credit union to borrow $5,500 at a rate of 8.11 % p.a. The date of the loan was September 7. Jennifer hoped to repay the loan on January 15. How much will Jennifer pay on January 15 if she pays off the loan on that date?
In June, Ginnie received a bill for $4500 from a store that provides her company's office supplies. She plans to pay the bill with her secured line of credit, at 1.5 percentage points above the Bank of Canada rate, compounded monthly. Ginnie can afford payments of $600 each month. The Bank of Canada rate is now at 0.6%. How much interest will she pay? A. $24.05 B. $4533.75 C. $33.75 D. $21.00 NUMERICAL RESPONSE A guitar manufacturer is making 50 guitars, at $350 each, for a music store. To pay the bill, the music store is taking out a bank loan at 6.4% interest, compounded monthly, with a 12-month term. The bank is offering a choice between two repayment schedules: Pay it off in one payment at the end of the term. Pay it off in monthly payments. a) If the loan is repaid in one payment, then the total payment will be $18 620, of which is interest. b) If the loan is repaid in monthly payments, then each payment will be and in interest will be…
Alan Tyler s VISA balance is $1,004.66. He may pay it off in 12 equal end-of-month payments of $95 each. What interest rate is Alan paying?