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
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1f65175-22f2-4d23-aa93-48593ba73823%2F670dff81-f2eb-4602-b4a4-4f6d2da78a87%2F816vqfmb_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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