Suppose your business has secured a line of credit and receives the accompanying statement of account for the month ofMarch. The limit on your line of credit is $1000.00. You receive daily interest of 1.1% p.a. on positive balances and pay dailyinterest of 6% p.a. on negative (line of credit) balances. Overdraft interest is 19% p.a. on the daily amount exceeding your line ofcredit limit. There is a service charge of $5.00 for each transaction causing an overdraft or adding to an overdraft. Use thisinformation to complete parts (a) through (e) below.E Click the icon to view the statement for the month of March. (a) Calculate the amount of interest earned.Total interest earned = $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)March Statement(b) Calculate the amount of interest charged on the line of credit.Total line of credit interest charged = sTransactionDepositWithdrawalBalanceDateDescription(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)March 3Balance- 738.78(c) Calculate the amount of interest charged on overdrafts.- 1189.78Cheque 263Cheque 264Deposit9451.00- 1439.78740.2215250.00Overdraft interest = Ss2180.0020(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)25Cheque 265119.00621.22(d) Calculate the amount of service charge.27Cheque 266248.00373.2231Service charge = $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)(e) What is the account balance on March 31?PrintDoneThe account balance on March 31 is dollars.(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Note: As per our guidelines, only the first three subparts have been answered Interest…

Answered: Suppose your business has secured a…

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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You have a credit card that charges an interest rate of 14.85% compounded monthly using the average daily balance method. The table below shows your activity for the month of July. Activity Beginning Balance Purchase Date July 1 July 9 July 14 Payment July 15 Purchase July 16 Purchase July 26 Purchase July 31 Ending Balance Amount 47.81 -225.00 82.38 18.15 38.8 Balance 697.52 745.33 520.33 602.71 620.86 659.66 659.66 What is the average daily balance for this account? What is the finance charge for the month of July?
Use the average daily balance method to compute the finance charge on the credit card account for the previous month. The starting balance and transactions on the account for the month of April are given to the right. Assume an annual interest rate of 18% The finance charge is $ (Round to the nearest cant as needed.) Month: April (30 days); previous month's balance: $300 April 5 April 16 April 20 April 28 Charged $82 for a coat Made payment of $250 Charged $174 for DVDs Charged $47 for groceries
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answer to the nearest cent.) $600 balance, 18%, $550 payment; average daily balance method
None
Letter of credit or line of credit. As We Go Bank offers its customers a line-of-credit loan in which each month’s outstanding balance has an interest charge at 12% APR. For the following loans, all with a $100,000 credit line, what are the required monthly interest payments and the total interest paid for the year?
10)
Suppose your MasterCard calculates interest using the average daily balance method, and the monthly interest rate is 2.4%. The itemized billing for the month of August is shown below. Detail Date Amount Unpaid balance August 1 635 Charge August 9 470 Charge August 10 860 Charge August 18 275 Payment received August 25 665 Last day of billing period August 31 Payment due date September 7 (a) Find the average daily balance. $ (b) Find the interest due for this month. $ (c) Find the total balance owed on the last day of the billing period. $ (d) This credit card requires a $15 minimum payment or 1/24 of the amount due, whichever is higher. What is the minimum monthly payment due for this month?
For the credit card account below, compute the average daily balance, the finance charge, and the account balance for the next billing. Assume the account is billed on the same date each month and that the annual interest rate is 18%. This credit card company calculates the finance charge on the average daily balance, but they consider each month of a year instead of using the number of days in the month. 12 Previous Balance: $1045 March 15 Billing Date March 23 Flowers $106 March 30 Payment $81 April 1 Groceries $86 April 8 Returns $50 April 11 Concert Tickets $138 Average Daily Balance: Finance Charge: Account Balance for the Next Billing:
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)?
Please solve this question
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days ong. (Round your answers to the nearest cent.) $3000 balance, 17%, $2,500 payment (a) previous balance method (b) adjusted balance method (c) average daily balance method
The credit terms offered to a customer by a business firm are 2/10, n/30, which means that the customer must pay the bill within 10 days. the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date. the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date. two sales returns can be made within 10 days of the invoice date and no returns thereafter.

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