You have a credit card that charges 18.99% on any outstanding balances, and 25% on cash advances, plus a fee of 3% of the amount of the cash advance. The closing date on the credit card is the 1st of each month. Last month you left a balance of $1800 on your credit card. This month you took out a cash advance of $450 and made $1600 in additional purchases. You made a payment of $950. What will the total of your new balance be on your next credit card statement, taking into account finance charges

Q: Assume that you start with a balance of $3900 on your credit card. During the first month you charge…

A: A credit card is a card that is issued by the bank to the users to enable that holder to pay a…

Q: You took a $500 cash advance by using checks linked to your credit card account. The bank charges…

A: Cash advance = $ 500 Cash advance fee = 2% Cash advance fee amount = Cash advance*Cash advance fee…

Q: will be received and posted on the 10th of each month. No other charges will be made on the account.…

A: The computation of charges for purchases made with a credit card is the subject of the inquiry.…

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A: It is a case of the future value of an annuity due where the deposit is done at the beginning of the…

Q: Assume that you start with a balance of $3900 on your credit card.During the first month you charge…

A: Here, Balance on Credit Card is $3900 APR is 29% Charges for first Month is $400 Charges for Second…

Q: On October 26, you plan to purchase a $1,800 computer by using one of your two credit cards. The…

A: A credit card refers to a credit facility that is provided by the banks or financial institutions…

Q: 8. On April 1, you opened a savings account at Main Street Savings Bank with a deposit of $817.25.…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: Vou have a credit card with an APR. of 16%. Vou begin with a balance of $750. In the first month you…

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Q: You have credit card debt of $2420 on your card. You receive an offer to transfer this debt to a new…

A: Monthly interest payment is determined by the interest charged on the principal amount on monthly…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Data given: 31 day billing cycle 10/1 Previous balance    $ 1,177.00 10/3 Credit $ 66     cr…

Q: You have a credit card with an APR of 22.8%. You begin with a balance of $1000, in response to which…

A: Finance charge Any fees that represent the credit cost, or borrowing cost. It is an interest accrued…

Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…

A: Future value = Present value ( 1 + rate of interest )Period Future value = Amount deposited * Future…

Q: Dy using Une of your two črédit cards. The Silver Card charges 18% interest and calculates interest…

A: For Silver card First Payment of 10 th November is $600 Balance   =$1800 - $600 = $1200 second…

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A: (a) Let's first calculate the interest charged by the Silver Card: The…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Annual percentage rate refers to the charge which is paid by the borrower to the lender on the loan…

Q: (a) During the September 20 through October 19 billing period, you pay the minimum required payment…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: You have a Visa credit card account with a 20.98% annual percentage rate calculated on the average…

A: The daily balances on a credit card is summed up and the result is divided by the number of days in…

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A: Adjusted balance method: Total Balance due    = Beginning balance - Payments paid  + Monthly…

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A: Principal amount : It is the initial or the total amount that is being borrowed by an individual…

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A: Credit, operational, market and liquidity risks are among the most serious threats that banks face.…

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A: Interest Rate = 6% APR Previous Balance = $1,173 Calculation of Number of days between is as follow:…

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A: Month 1: Outstanding balance in beginning = 610$ APR = 24%  Finance charge = 610$ * 24% * 1/12 =…

Q: Calculate the monthly finance charge for the credit card transaction. It takes 10 days for a payment…

A: We will calculate the interest on the basis of simple interest.

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A: The interest on the credit card is charged monthly. The amount of payment reduces the outstanding…

Q: You agree to make 36 deposits of $600 at the beginning of each month into a bank account. At the end…

A: An annuity is a series of fixed amount cash flows at equal time intervals for a specific duration.…

Q: Assume that you start with a balance of $630 on your credit card. During the first month, you charge…

A: To complete the table, we need to follow these steps: 1. Calculate the finance charge for each…

Q: You owe $1,853.42 on a credit card with a limit of $3,000.00 at a rate of 15.5% APR. You pay…

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Q: You miss your first payment on the $375 balance. You receive a bill in the mail after 45 days…

A: When you miss your payment, the credit card company charges interest on it. The new balance will be…

Q: Assume you have a balance of $1000 on a credit card with an APR of 24%, or 2% per month. You start…

A: Loan amortization table presents how the loan is repaid, the periodic payment can be made to repay…

Q: On October 24, you plan to purchase a $1,200 computer by using one of your two credit cards. The…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: APR = 9%Previous balance = $1156No of days = 31To find: Amount owed.

Q: calculate the monthly finance charge for the credit card transaction. Know that it takes 10 days for…

A: There are various method in which the interest on credit card is charges such as previous balance,…

Credit card

A credit card is provided by financial institutions or banks, which permits a person to borrow money on a preapproved limit for purchases on a credit basis. The credit limit is decided by the institution and bank which issues a credit card depending on the person’s credit score and income. A cardholder can use the card for credit purchases, a balance transfer, cash advances.