Chapter 10, Problem 65E

Elizabeth went on a fabulous vacation in May and racked up a lot of charges on her credit card. When it came time to pay her June credit card bill, she left a balance of $1200. Elizabeth’s credit card billing cycle runs from the nineteenth of each month to the eighteenth of the next month, and her interest rate is 19.5%. She started the billing cycle June 19—July 18 with a previous balance of $1200. In addition, she made three purchases, with the dates and amounts shown in Table 10-11. On July 15 she made an online payment of $500.00 that was credited to her balance the same day.

a. Find the average daily balance on the credit card account for the billing cycle June 19—July 18.

b. Compute the interest charged for the billing cycle June 19— July 18.

c. Find the new balance on the account at the end of the June 19—July 18 billing cycle.

Date	Amount of purchase/payment
6/21	$179.58
6/30	$40.00
7/5	$98.35
7/15	Payment $500.00