Suppose you open a credit card account and charge $125 to the account on the first of each month to pay for your cable and Internet subscription. You plan to pay just the minimum payment each month for the first 6 months (until your summer job starts). The APR is 21.99% and the minimum payment is 6.5% of the balance. Use Excel to fill in the values in the table below and answer the questions that follow. Month Starting Balance New Purchases Balance + Purchases Finance Charge New Balance Minimum Payment $0 $125 $125 $125 3. $125 4. $125 $125 $125 XXX XXX XXX XXX XXX

Suppose you open a credit card account and charge $125 to the account on the first of each month to pay for your cable and Internet subscription. You plan to pay just the minimum payment each month for the first 6 months (until your summer job starts). The APR is 21.99% and the minimum payment is 6.5% of the balance. Use Excel to fill in the values in the table below and answer the questions that follow. Month Starting Balance New Purchases Balance + Purchases Finance Charge New Balance Minimum Payment $0 $125 $125 $125 3. $125 4. $125 $125 $125 XXX XXX XXX XXX XXX

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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A particular credit card calculates interest using the unpaid balance method. The monthly interest rate is 1.57% on the unpaid balance on the first day of the billing period minus any payment. At the beginning of the month you owed $1352. You made a payment of $300. a) During the month you bought theatre tickets for $37, went out to eat for $80, and bought a television for $350. What's your new balance (include what your balance was after your payment + new purchases + finance charges)?
am. 111.
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If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 9% APR and the following transactions? (Round your answer to the nearest cent.) 31-day billing cycle 10/1 Previous balance 10/3 Credit 10/12 Charge: King Soopers 10/15 Payment 10/25 Charge: Delta 10/30 Charge: Holiday Fun Amount owed $84 cr. $143 $260 cr. $316 $56 Check my $ 1,159
If you are attempting these questions ...then solve for both images
Yogesh
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You credit card charged you 1% per month. This rate when multiplied by 12 is call the rate.