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 June are given to the right. Assume an annual interest rate of 18%. Month: June (30 days); previous month's balance: $420 June 2 June 12 June 23 June 27 Made payment of $353 Charged $45 for gasoline Charged $110 for skis Made payment of $100 What was the finance charge?
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 June are given to the right. Assume an annual interest rate of 18%. Month: June (30 days); previous month's balance: $420 June 2 June 12 June 23 June 27 Made payment of $353 Charged $45 for gasoline Charged $110 for skis Made payment of $100 What was the finance charge?
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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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 June are given to the right.
Assume an annual interest rate of 18%.
Month: June (30 days); previous month's balance: $420
June 2
June 12
June 23
June 27
Made payment of $353
Charged $45 for gasoline
Charged $110 for skis
Made payment of $100
What was the finance charge?
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