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Use the average daily balance method to compute the finance charge on the credit for the month of August (31 days). The starting balance from the previous month is transactions on the account for the month are given in the table to the right. Assum interest rate of 16% 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.)

Use the average daily balance method to compute the finance charge on the credit for the month of August (31 days). The starting balance from the previous month is transactions on the account for the month are given in the table to the right. Assum interest rate of 16% 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.)

Essentials Of Investments
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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K 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 $240. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 16% 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 4 August 8 August 14 August 15 Transac Made payment of $71 Charged $145 for hiking boots Charged $19 for gasoline Charged $26 for restaurant meal
Transcribed Image Text:K 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 $240. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 16% 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 4 August 8 August 14 August 15 Transac Made payment of $71 Charged $145 for hiking boots Charged $19 for gasoline Charged $26 for restaurant meal
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