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 April are given below. Assume an annual interest rate of 18%. Month: April (30 days); previous month's balance: $370 April 14 Charged $89 for a coat April 17 Made payment of $140 April 22 Charged $156 for DVDs April 29 Charged $25 for groceries
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 April are given below. Assume an annual interest rate of 18%. Month: April (30 days); previous month's balance: $370 April 14 Charged $89 for a coat April 17 Made payment of $140 April 22 Charged $156 for DVDs April 29 Charged $25 for groceries
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 April are given below. Assume an annual interest rate of 18%.
Month: April (30 days); previous month's balance:
$370
|
April 14
|
Charged
$89
for a coat |
|
April 17
|
Made payment of
$140
|
|
April 22
|
Charged
$156
for DVDs |
|
April 29
|
Charged
$25
for groceries |
Expert Solution
Step 1
Given:
Annual interest rate is 18%
|
April 14
|
$89
|
Charged for a coat |
|
April 17
|
$140
|
Made payment of
|
|
April 22
|
$156
|
Charged
for DVDs
|
|
April 29
|
$25
|
Charged
for groceries
|
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