Average Daily Balance Interest CalculationISThe balance on a credit card, that charges a 10.5%APR interest rate, over a 1 month period is given inthe 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 dailybalance, for this card over this 1 month period?finance charge = $ [ ? ]Round to the nearest hundredth.Entermht©2003 - 2021 Aceļlus Corporation. All Rights Reserved.

Finance Charge is the interest charged by credit card companies over an outstanding amount. Average…

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What is the finance charge, on the average daily balance, for this card over this 1 month period?

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

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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