Vou have a credit card with an APR. of 16%. Vou begin with a balance of $750. In the first month you make a payment of $550 and you make charges amounting to $400. In the second month you make a payment of $300 and you make new charges of $600. Complete the following table. (Round your answers to the nearest cent.) Previous balance Finance New balance Payments Purchases charge Month 1 $750 Month 2

Vou have a credit card with an APR. of 16%. Vou begin with a balance of $750. In the first month you make a payment of $550 and you make charges amounting to $400. In the second month you make a payment of $300 and you make new charges of $600. Complete the following table. (Round your answers to the nearest cent.) Previous balance Finance New balance Payments Purchases charge Month 1 $750 Month 2

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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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.
Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 27%. Complete the account activity table for Kathy. Previous Month Month's Balance March $680.00 $ Need Help? Read It Finance Charge (in $) Purchases and Cash Advances $124.97 Payments and Credits $95.00 New Balance End of Month (in $) LA
whats the answer to number 1?
whats the answer to number 2?
Directions: 1. At the beginning of the month, you have a balance due of $3,000 and plan to pay off $200 a month while making additional purchases of $115 each month. 2. Use the interest of 18% and an annual fee of $49 to complete the repayment chart below. Interest Rate: 18% (APR); 1.5% monthly Annual Fee: $49 Month Balance Payments Purchases Interest and Interest and Fee (Month) Fee (Total) 1 $3,000 $200 $115 $49 $45 $94 $3,009 $2,969.14 $200 $115 $45.14 $139.14 5 6. 7. 8. 9. 10 11 12 Month #2 (Model): $3,000 (Balance) - $200 (Payment) + $115 (Purchases) + $49 (Annual Fee) + $45 (Monthly Interest Payment) = $3,009 Month #3 (Model): $3,009 (Balance) - $200 (Payment) + $115 (Purchases) + $45.14 (Interest) = $2,969.14 Month #4 Month #5 Month #6 Month #7 Month #8 Month #9 Month #10 Month #11 Month #12 Summary: What can you do as a wise consumer to avoid this debt in the first place or to pay it off quickly if you make mistakes and end up in a similar situation?
Assume that you start with a balance of $630 on your credit card. During the first month, you charge $180 and make a payment of $400. During the second month, you charge $100 and make a payment of $320. Assume that your credit card charges a 20% APR. Complete the following table. (Round your answers to the nearest cent.) Previous Balance Finance Charge (+) Purchases (+) Payments (-) New Balance Month 1 Month 2
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.) $6,000 balance, 14%, $60 payment (a) previous balance method (b) adjusted balance method (c) average daily balance method 2$
Dallas Pierce's most recent credit card statement follows. Her finance charge is 18% APR. Calculate Dallas's average daily balance, finance charge, and new balance. Note: Round your final answers to the nearest cent. 9/2 9/7 9/13 9/17 9/28 Average daily balance Finance charge New balance 30-day billing cycle Billing date Payment Charge: Kohl's Payment Charge: WalMart $1,110 $340 $ 330 320 115 Previous balance Credit Credit
You have a credit card that charges an interest rate of 14.85% compounded monthly using the average daily balance method. The table below shows your activity for the month of July. Activity Beginning Balance Purchase Date July 1 July 9 July 14 Payment July 15 Purchase July 16 Purchase July 26 Purchase July 31 Ending Balance Amount 47.81 -225.00 82.38 18.15 38.8 Balance 697.52 745.33 520.33 602.71 620.86 659.66 659.66 What is the average daily balance for this account? What is the finance charge for the month of July?
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, 14%, $2,500 payment (a) previous balance method $ (b) adjusted balance method $ (c) average daily balance method $ Need Help? Read It
Suppose you have a revolving credit account at an annual percentage rate of 12%, and your previous monthly balance is $383.79. Find your new balance (in $) if your account showed the following activity. Use the unpaid balance method. (Round your answer to the nearest cent.)
Finance Calculating the Cost of Credit Card Purchases Directions Use the interest rate of 18% and an annual fee of $49 to complete this chart. In Month 1, there was a balance due of $3,000. The borrower will make a monthly payment of $200 and keep new purchases of goods and services at $115 per month for the year. Month 1 Calculate the interest for each month (balance x 1.5%). To obtain the balance for the next month, subtract the payment from the balance and add cost of new purchases plus monthly interest and fee. For example: $3,000 - $200 = $2800+ $115 + $94 = $3,009. (NOTE: The annual fee of $49 is paid only once.) 2 3 4 5 6 7 8 9 10 11 Interest rate: 18% (APR); 1.5% monthly 12 Balance $3,000 $3,009 $2,969.14 Payments $200 $200 Purchases $115 $115 E $49 $45 67-20112.2011 CARD WALICH FRACTORES 2017-12-221. PARTS TAPER Annual fee: $49 Interest & Fee $45.14 Interest & Fee (Cumulative) $94 $139.14 101

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