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The credit card with the transactions described on the right uses the average daily balance method to calculate interest. The monthly interest rate is 2.5% of the average daily balance. Calculate parts a-d using the statement on the right. Transaction Amount Transaction Description Previous balance, $6310.00 March 1 Billing date March 5 Payment $350.00 credit $50.00 March 7 Charge: Restaurant March 12 Charge: Groceries $100.00 March 21 Charge: Car Repairs $270.00 March 31 End of billing period Payment Due Date: April 9 *** a. Find the average daily balance for the billing period. Round to the nearest cent. The average daily balance for the billing period is $ 6205.81. (Round to the nearest cent as needed.) b. Find the interest to be paid on April 1, the next billing date. Round to the nearest cent. The interest to be paid on April 1 is $. (Use the answer from part a to find this answer. Round to the nearest cent as needed.)

The credit card with the transactions described on the right uses the average daily balance method to calculate interest. The monthly interest rate is 2.5% of the average daily balance. Calculate parts a-d using the statement on the right. Transaction Amount Transaction Description Previous balance, $6310.00 March 1 Billing date March 5 Payment $350.00 credit $50.00 March 7 Charge: Restaurant March 12 Charge: Groceries $100.00 March 21 Charge: Car Repairs $270.00 March 31 End of billing period Payment Due Date: April 9 *** a. Find the average daily balance for the billing period. Round to the nearest cent. The average daily balance for the billing period is $ 6205.81. (Round to the nearest cent as needed.) b. Find the interest to be paid on April 1, the next billing date. Round to the nearest cent. The interest to be paid on April 1 is $. (Use the answer from part a to find this answer. Round to the nearest cent as needed.)

FINANCIAL ACCOUNTING
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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The credit card with the transactions described on the right uses the average daily balance method to calculate interest. The monthly interest rate is 2.5% of the average daily balance. Calculate parts a-d using the statement on the right. Transaction Description Previous balance, $6310.00 March 1 Billing date March 5 Payment March 7 Charge: Restaurant March 12 Charge: Groceries March 21 Charge: Car Repairs March 31 End of billing period Payment Due Date: April 9 Ai a. Find the average daily balance for the billing period. Round to the nearest cent. The average daily balance for the billing period is $ 6205.81. (Round to the nearest cent as needed.) a Transaction Amount b. Find the interest to be paid on April 1, the next billing date. Round to the nearest cent. The interest to be paid on April 1 is $. (Use the answer from part a to find this answer. Round to the nearest cent as needed.) $350.00 credit $50.00 $100.00 $270.00 4 HO
Transcribed Image Text:The credit card with the transactions described on the right uses the average daily balance method to calculate interest. The monthly interest rate is 2.5% of the average daily balance. Calculate parts a-d using the statement on the right. Transaction Description Previous balance, $6310.00 March 1 Billing date March 5 Payment March 7 Charge: Restaurant March 12 Charge: Groceries March 21 Charge: Car Repairs March 31 End of billing period Payment Due Date: April 9 Ai a. Find the average daily balance for the billing period. Round to the nearest cent. The average daily balance for the billing period is $ 6205.81. (Round to the nearest cent as needed.) a Transaction Amount b. Find the interest to be paid on April 1, the next billing date. Round to the nearest cent. The interest to be paid on April 1 is $. (Use the answer from part a to find this answer. Round to the nearest cent as needed.) $350.00 credit $50.00 $100.00 $270.00 4 HO
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