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 $260. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 24% on the account and that the billing date is August 1st. The finance charge for the month of August is $ (Round to the nearest cent as needed.) Date August 7 August 14 August 19 August 30 Transaction Made payment of $79 Charged $125 for hiking boots Charged $24 for gasoline Charged $27 for restaurant meal

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 $260. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 24% on the account and that the billing date is August 1st. The finance charge for the month of August is $ (Round to the nearest cent as needed.) Date August 7 August 14 August 19 August 30 Transaction Made payment of $79 Charged $125 for hiking boots Charged $24 for gasoline Charged $27 for restaurant meal

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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A credit card bill for $559 was due on September 14. Purchases of $289 were made on September 19, and $18 was charged on September 28. A payment of $350 was made on September 25. The annual interest on the average daily balance is 20.5%. Find the finance charge due (in dollars) on the October 14 bill. (Use 365 for the number of days in a year. Round your answer to the nearest cent.)
Calculate the average daily balance (in $) for October for a revolving credit account with a previous month's balance of $120 and the following activity. (Round your answer to the nearest cent.) Date Activity Amount October 3 Cash advance $50.00 October 7 Payment $75.00 October 10 Purchase $27.59 October 16 Credit $20.00 October 25 Purchase $124.60 average daily balance = $
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
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $4000 balance, 16%, $2,500 payment (a) previous balance method(b) adjusted balance method (c) average daily balance method
Average Daily Balance Interest Calculation IS The balance on a credit card, that charges a 10.5% APR interest rate, over a 1 month period is given in the following table: Days 1-3: Days 4-20: $200 ($50 purchase) Days 21-30: $50 $150 (initial balance) ($150 payment) What is the finance charge, on the average daily balance, for this card over this 1 month period? finance charge = $ [ ? ] Round to the nearest hundredth. Enter mht©2003 - 2021 Aceļlus Corporation. All Rights Reserved.
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answer to the nearest cent.) $475 balance, 16%, $425 payment; average daily balance method
A credit card bill for $559 was due on September 14. Purchases of $283 were made on September 19, and $15 was charged on September 28. A payment of $350 was made on September 25. The annual interest on the average daily balance is 21.5%. Find the finance charge due (in dollars) on the October 14 bill. (Use 365 for the number of days in a year. Round your answer to the nearest cent.) $?
2. Given the following information about a credit card account, determine the average daily balance for the period, then determine the finance charge if the interest is 1.5% of the average daily balance, and then find the new balance at the end of the period. Previous Balance - $228.95 January 27 - Billing Date February 9 - Charge - $11.08 February 13 - Returns - $26.54 February 20 - Payment - $29 February 25 - Charge - $71.19 3. Find the annual percentage rate using the annual percentage rate table for the following. Amount Financed: $4500 Finance Charge: $1220 No. of Monthly Payments: 48 4. James buys a used car costing $12,800 with a $500 down payment and loan payments of $399 a month for 36 months. Determine the amount financed, the total installment cost, the total interest paid, and the APR on the loan.
Consider the following credit card activity for the month of September: Date Balance September 1 $0 September 6 $355 September 15 $1,052 September 19 $1,798 September 25 $2,326 If this card's annual APR is 15.8% 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.
The credit card with the transactions described in the popup below uses the average daily balance method to calculate interest. The monthly interest rate is 1.5% of the average daily balance. Calculate parts a-d using the statement in the popup. a. Find the average daily balance for the billing period. Round to the nearest cent. The average daily balance for the billing period is $__?
Suppose your VISA card calculates interest using the average daily balance method, and the monthly interest rate is 1.75%. The itemized billing for the month of April is shown below. Detail Unpaid balance Charge Charge Charge Payment received Last day of billing period Payment due date Date April 1 April 3 April 11 April 15 April 28 April 30 May 7 (a) Find the average daily balance. $ (b) Find the interest due for this month. $ Amount 95 755 395 890 845 (c) Find the total balance owed on the last day of the billing period. $ (d) This credit card requires a $20 minimum payment or 1/36 of the amount due, whichever is higher. What is the minimum monthly payment due for this month? $

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