Chapter 10, Problem 66E

Reid’s credit card cycle ends on the twenty-fifth of every month. The interest rate on Reid’s Visa card is 21.99%, and the billing cycle runs from the twenty-sixth of a month to the twenty-fifth of the following month. At the end of the July 26—Aug. 25 billing cycle, Reid’s balance was $5000. During the next billing cycle (Aug. 26—Sept. 25) Reid made three purchases with the dates and amounts shown in Table 10-12. On September 22 Reid made an online payment of $200 that was credited towards his balance the same day.

a. Find the average daily balance on the credit card account for the billing cycle Aug. 26—Sept. 25.

b. Find the interest charged for the billing cycle Aug. 26—Sept. 25.

c. Find the new balance on the account at the end of the Aug. 26—Sept. 25 billing cycle.

Date of purchase	Amount of purchase
8/31	$148.55
9/12	$30.00
9/19	$103.99