What is the average daily balance for this account? What is the finance charge for the month of March? What will the new months starting balance be?
What is the average daily balance for this account? What is the finance charge for the month of March? What will the new months starting balance be?
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
Related questions
Question
10
![You have a credit card that charges an interest rate of 20.15% compounded monthly. The table below shows
your activity for the month of March.
Date
Activity
Amount
Enter your search term
March 1
Beginning Balance
736.60
March 4
Purchase
45.57
782.17
March 15
Payment
-175.00
607.17
March 18
Purchase
96.33
703.50
March 25
Purchase
10.12
713.62
March 30
Purchase
25.81
739.43
March 31
Ending Balance
739.43
****Open ABD Table and Enter Balance, Days held, and Interest Rate ***
@ ADB Table [+]
What is the average daily balance for this account?
What is the finance charge for the month of March?
What will the new months starting balance be?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a835018-26ec-4326-afb4-a43abe45cac1%2Fa6db2583-e0ac-4dea-86b2-1bf662c01abd%2Fyncnum7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You have a credit card that charges an interest rate of 20.15% compounded monthly. The table below shows
your activity for the month of March.
Date
Activity
Amount
Enter your search term
March 1
Beginning Balance
736.60
March 4
Purchase
45.57
782.17
March 15
Payment
-175.00
607.17
March 18
Purchase
96.33
703.50
March 25
Purchase
10.12
713.62
March 30
Purchase
25.81
739.43
March 31
Ending Balance
739.43
****Open ABD Table and Enter Balance, Days held, and Interest Rate ***
@ ADB Table [+]
What is the average daily balance for this account?
What is the finance charge for the month of March?
What will the new months starting balance be?
Expert Solution
Step 1
Finance Charge:
Finance charge implies the amount charged for the usage of credit.
Average Daily Balance:
It is a method to compute the interest amount by taking into consideration the balance amount invested/owed at the end of every day.
Step by step
Solved in 5 steps
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