Answered: Smith has a credit card that charges…

Smith has a credit card that charges 13% annual interest on the monthly average dail his balance was $2,500.14. For 6 days the balance was $1,500.14. And for 9 days the est.

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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Question

John Smith has a credit card that charges 13% annual interest on the monthly average daily balance for the billing cycle. The current billing cycle has 30 days. For 15
days his balance was $2,500.14. For 6 days the balance was $1,500.14. And for 9 days the balance was $1,883.59. Find the average daily balance. Find the amount of
interest,
The average daily balance is $|. The amount of interest is $
(Round to the nearest cent as needed.)

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