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, $6220.00 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 Transaction Amount $250.00 credit $40.00 $80.00 $280.00 a. Find the average daily balance for the billing-period. Round to the nearest cent. The average daily balance for the billing period is $6185.48. (Round to the nearest cent as needed.) c. Find the balance due on April 1. The balance due on April 1 is $. (Use the answer from part b to find this answer.) 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 $ 154.64. (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 Description Previous balance, $6220.00 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 Transaction Amount $250.00 credit $40.00 $80.00 $280.00 a. Find the average daily balance for the billing-period. Round to the nearest cent. The average daily balance for the billing period is $6185.48. (Round to the nearest cent as needed.) c. Find the balance due on April 1. The balance due on April 1 is $. (Use the answer from part b to find this answer.) 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 $ 154.64. (Use the answer from part a to find this answer. Round to the nearest cent as needed.)
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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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
Amount
Transaction Description
Previous balance, $6220.00
March 1 Billing date
March 5 Payment
$250.00 credit
$40.00
March 7 Charge: Restaurant
March 12 Charge: Groceries
$80.00
March 21 Charge: Car Repairs $280.00
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 $ 6185.48.
(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 $154.64.
(Use the answer from part a to find this answer. Round to the nearest cent as needed.)
c. Find the balance due on April 1:
The balance due on April 1 is $
(Use the answer from part b to find this answer.)
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