Suppose your MasterCard calculates interest using the average daily balance method, and the monthlyinterest rate is 2.4%. The itemized billing for the month of August is shown below. Detail Date AmountUnpaid balance August 1 635 Charge August 9 470 Charge August 10 860 Charge August 18 275 Paymentreceived August 25 665 Last day of billing period August 31 Payment due date September 7 (a) Find theaverage daily balance. $ (b) Find the interest due for this month. $ (c) Find the total balance owed on thelast day of the billing period. $ (d) This credit card requires a $15 minimum payment or 1/24 of theamount due, whichever is higher. What is the minimum monthly payment due for this month?

Financial organisations, including banks and credit card firms, use the average daily balance…

Answered: Suppose your MasterCard calculates…

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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Suppose the charge account of Strong's Mailing Service at the local supply store had a 1.8% interest rate per month on the average daily balance. Find the average daily balance if Strong's had an unpaid balance on March 1 of $196.90, a payment of $40 posted on March 8, and a purchase of $25.20 posted on March 16. The billing cycle ends March 31. The average daily balance is $ (Type an integer or decimal rounded to the nearest hundredth as needed.)
Suppose your MasterCard calculates interest using the average daily balance method, and the monthly interest rate is 1.9%. The itemized billing for the month of August is shown below The average daily balance has already been computed and is $2739.52. (a) Find the interest due for this month. $ (b) Find the total balance owed on the last day of the billing period. $ (c) 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? $
Suppose the charge account of Strong's Mailing Service at the local supply store had a 1.8% interest rate per month on the average daily balance. Find the average daily balance if Strong's had an unpaid balance on March 1 of $141.50, a payment of $50 posted on March 10, and a purchase of $36.60 posted on March 24. The billing cycle ends March 31. The average daily balance is $ (Type an integer or decimal rounded to the nearest hundredth as needed.)
Consider the following credit card activity for the month of September: Date Balance September 1 $0 September 7 $331 September 13 $935 September 21 $1,552 September 25 $ 2,208 If this card's annual APR is 20.9% and the September balance is not paid during the grace period, how much interest is owed for September? There are 30 days in September. Round your answer to the nearest dollar.
Alexis Monroe, a biologist from Dyersburg, Tennessee, is curious about the accuracy of the interest charges shown on her most recent credit card billing statement. Interest Charged Interest Charge on Purchases $6.40 Interest Charge on Cash Advances $4.65 TOTAL INTEREST FOR THIS MONTH $11.05 Use the average daily balances provided to recalculate the interest charges, and compare the result with the amount shown on the statement. Round your answers to the nearest cent. Annual Percentage Balances Subject to Type of Balance Rate (APR) Interest Rate Interest Charge Purchases 15.14% (V) $513.39 $ Cash Advances 22.43% (V) $252.98 $ Balance Transfers 0.00% $637.50 $ Penalty APR 28.99% $ 0.00 $
Please written by computer source For the period beginning October 14, the average daily balance on Perry’s credit card was $810. If the balance at the end of the cycle was $465 and the APR on the card is 7.5%, what was the balance due on November 14?
Use the average daily balance method to compute the finance charge on the credit card account for the month of August (31 days). The starting balance from the previous month is $300. The transactions on the account for the month are given inthe table to the right. Assume an annual interest rate of 25% on the account and that the billing date is August 1. August 4 made payment of $94.August 14 charged $140 for hiking boots August 17 charged $18 for gasoline August 29 charged $31 for restaurant meal. What is the finance charge for August?
17. Calculate the finance charges for the following credit card account for August (which has 31 days) using the average daily balance method. July's balance was $275 and the annual interest rate is 18%. Date Transaction August 6 Made payment of $75 August 12 Charged $115 for clothes August 19 Charged $20 for gasoline August 24 Charged $16 for lunch
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:
Date 7. You have a credit card that charges an interest rate of 5% compounded monthly. The table below shows your activity for the month of November. November 1 November 7 November 9 November 20 November 22 November 30 Activity Beginning Balance Payment Charge Charge Charge Ending Balance a. What is the average daily balance for this account? Amount -$75.00 $80.00 $25.00 $10.00 Balance $180.00 $105.00 $185.00 $210.00 $220.00 $220.00 b. What is the finance charge for the month of November?
You have an account with a $1500 credit limit that charges 13.25% interest using the average daily balance method. Assuming a 30-day month, you start with a balance of $350 on Day 1. On Day 5, you charge $100, and you pay $60 on Day 15. What is your average daily balance, assuming charges and payments begin the next day? Round your answer to 2 decimal places and do not include the dollar sign
Use the average daily balance method to compute the finance charge on the credit card account for the month of August (31 days). The starting balance from the previous month is $300. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 22% on the account and that the billing date is August 1st.

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