Chapter 5.1, Problem 47E

You have maxed out your credit card and owe $\$5,000.$ its interest rate is $24\%$. Each month, you make the minimum required payment of $\$140$.

a. During the January $10$ through February $9$ billing period, you pay $\$140$ on January $25$. Find the average daily balance, the finance charge, and the new balance. (The new balance includes the finance charge.).

b. During the February $10$ through March $9$ billing period, you pay $\$140$ on March $3$. Find the average daily balance, the finance charge, and the new balance.

c. During the March $10$ through April $9$ billing period, you pay $\$140$ on March $31$. Find the average daily balance, the finance charge, and the new balance.

d. Compare the result of parts (a) through (c) with those of Exercise 45. Discuss the impact of the larger payment in thus exercise.