The credit card with the itemized billing statement below uses the average daily balance method to calculate interest. The monthly interest rate is 1.7%. Find the minimum monthly payment due on July 9 if the minimum monthly payment is 1/25th of the balance due on July 1st, rounded up to the nearest dollar. Show work. Transaction description Previous balance, $2645.04 June 1 Billing Date June 6 June 8 June 17 June 30 Payment Charge: Gas Charge: groceries End of billing period Payment Due Date: July 9 Transaction amount $1800.00 credit $41.37 $130.01

The credit card with the itemized billing statement below uses the average daily balance method to calculate interest. The monthly interest rate is 1.7%. Find the minimum monthly payment due on July 9 if the minimum monthly payment is 1/25th of the balance due on July 1st, rounded up to the nearest dollar. Show work. Transaction description Previous balance, $2645.04 June 1 Billing Date June 6 June 8 June 17 June 30 Payment Charge: Gas Charge: groceries End of billing period Payment Due Date: July 9 Transaction amount $1800.00 credit $41.37 $130.01

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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Concept explainers

Credit card

A credit card is provided by financial institutions or banks, which permits a person to borrow money on a preapproved limit for purchases on a credit basis. The credit limit is decided by the institution and bank which issues a credit card depending on the person’s credit score and income. A cardholder can use the card for credit purchases, a balance transfer, cash advances.

Question

The credit card with the itemized billing statement below uses the average daily balance method to
calculate interest. The monthly interest rate is 1.7%. Find the minimum monthly payment due on July 9 if
the minimum monthly payment is 1/25th of the balance due on July 1st, rounded up to the nearest dollar.
Show work.
Transaction description
Previous balance, $2645.04
Billing Date
Payment
Charge: Gas
Charge: groceries
End of billing period
June 1
June 6
June 8
June 17
June 30
Payment Due Date: July 9
Transaction amount
$1800.00 credit
$41.37
$130.01

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