Question

For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.6% per month on the average daily balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing. Previous Balance: $775.84 July 6 Billing Date July 14 Payment $200 July 25 Lunch $45.66 August 3 Concert tickets $78.62 (a) The average daily balance is $ . (Round to the nearest cent as needed.) (b) The finance charge is $ . (Round to the nearest cent as needed.) (c) The account balance for the next billing is $ . (Round to the nearest cent as needed.) 

          For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.6% per month on the average daily balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing.

Previous Balance: $775.84
July 6 Billing Date
July 14 Payment $200
July 25 Lunch $45.66
August 3 Concert tickets $78.62

(a) The average daily balance is $ .
(Round to the nearest cent as needed.)

(b) The finance charge is $ .
(Round to the nearest cent as needed.)

(c) The account balance for the next billing is $ .
(Round to the nearest cent as needed.)
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For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.6% per month on the average daily balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing. Previous Balance: 775.84 July 6 Billing Date July 14 Payment200 July 25 Lunch 45.66 August 3 Concert tickets78.62 (a) The average daily balance is . (Round to the nearest cent as needed.) (b) The finance charge is . (Round to the nearest cent as needed.) (c) The account balance for the next billing is . (Round to the nearest cent as needed.)

Added by Valerie J.

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Calculus: Early Transcendentals
Calculus: Early Transcendentals
James Stewart 8th Edition
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For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.6% per month on the average daily balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing. Previous Balance: $775.84 July 6 Billing Date July 14 Payment $200 July 25 Lunch $45.66 August 3 Concert tickets $78.62 (a) The average daily balance is $ . (Round to the nearest cent as needed.) (b) The finance charge is $ . (Round to the nearest cent as needed.) (c) The account balance for the next billing is $ . (Round to the nearest cent as needed.)
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Transcript

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00:01 So we need to find the average daily balance, the monthly finance charge, and the account balance for the next billing.
00:06 So we need to count days here.
00:08 So i'm not going to rewrite every day, but let's think from july 6 to july 14th, the balance is going to be $775 .84.
00:18 How many days is that? we're going to go 14 minus 6 is 8, but we don't want to, we need to make sure we include the 6 in there.
00:29 I'm going to add one more day.
00:30 So that means for nine days it had a balance of 7 .74 -84.
00:35 Well, what happened on the 14th? they made a payment of $200, which means now the balance is now going to be $575 -84, and that's going to be until july 25th.
00:48 So i'm going to go and say that 25 minus the 14.
00:54 That's going to be 11 days.
00:56 But we have to make sure we include the 14th and then.
00:59 So we're looking at 12 days, we have a balance of 575 -884.
01:04 Now we're going to go to lunch on the 25th, and we're going to add 4566 to our bill.
01:12 So that means we're going to have balance now of 621 .50.
01:19 That's going to be until august the 3rd.
01:21 Okay, so now we've got to do a little bit different calculation.
01:24 There's 31 days in july.
01:27 Let's subtract the 25th.
01:28 So there's six days there...
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