Use the unpaid balance method to find the finance charge on the credit card account for August. 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 24% on the account and that the billing date is August 1st. Date Transaction August 8 Made payment of $78 August 12 Charged $130 for hiking boots August 22 Charged $19 for gasoline August 28 Charged $34 for restaurant meal
Use the unpaid balance method to find the finance charge on the credit card account for August. 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 24% on the account and that the billing date is August 1st. Date Transaction August 8 Made payment of $78 August 12 Charged $130 for hiking boots August 22 Charged $19 for gasoline August 28 Charged $34 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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Question
Use the unpaid balance method to find the finance charge on the credit card account for August. 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 24% on the account and that the billing date is August 1st.
|
Date
|
Transaction
|
|---|---|
|
August 8
|
Made payment of
$78
|
|
August 12
|
Charged
$130
for hiking boots |
|
August 22
|
Charged
$19
for gasoline |
|
August 28
|
Charged
$34
for restaurant meal |
Expert Solution
Step 1
The unpaid balance for the month is the sum of the previous months balance and any purchases made less any payments done.
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