You have a credit card that charges an interest rate of 1.8% compounded monthly. The table below shows your activity for the month of December. Date Activity Amount December 1 Beginning Balance 1327.24 December 9 Purchase 28.84 December 10 Payment −150 December 16 Purchase 97.76 December 22 Purchase 14.56 December 23 Purchase 54.47 December 31 Closing Date What is the statement balance due for December?

You have a credit card that charges an interest rate of 1.8% compounded monthly. The table below shows your activity for the month of December. Date Activity Amount December 1 Beginning Balance 1327.24 December 9 Purchase 28.84 December 10 Payment −150 December 16 Purchase 97.76 December 22 Purchase 14.56 December 23 Purchase 54.47 December 31 Closing Date What is the statement balance due for December?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

You have a credit card that charges an interest rate of 1.8% compounded monthly. The table below shows your activity for the month of December.

Date Activity Amount

December 1 Beginning Balance 1327.24

December 9 Purchase 28.84

December 10 Payment −150

December 16 Purchase 97.76

December 22 Purchase 14.56

December 23 Purchase 54.47

December 31 Closing Date

What is the statement balance due for December?

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Problem #1. You have a Visa credit card account with a 26.49% annual percentage rate calculated on the average daily balance. The billing date is the first day of each month, and the billing cycle is the number of days in that month. Your credit card balance on April 1 was $552. On April 10th you made a $119 purchase. You made another purchase, a $25 gift card, on April 24th. You made a $150 payment on April 29th. Show your work for all parts of the problem. (a) What is the average daily balance for April? (b) What is your finance charge on the account as of May 1st? (c) What is your new credit card balance?
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