Suppose your VISA card calculates interest using the average daily balance method, and the monthly interest rate is 1.7%. The itemized billing for the month of April is shown below. Detail Date Amount Unpaid balance April 1 1130 Charge April 3 1055 Charge April 11 1145 Charge April 15 350 Payment received April 28 590 Last day of billing period April 30 Payment due date May 7 (a) Find the average daily balance. $ (b) Find the interest due for this month. $ (c) Find the total balance owed on the last day of the billing period. $ (d) This credit card requires a 520 minimum payment or 1/36 of the amount due, whichever is higher. What is the minimum monthly payment due for this month?
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From April 1 to April 2: 1130 * 2 = 2260 From April 3 to April 10: (1130 + 1055) * 8 = 17400 From April 11 to April 14: (1130 + 1055 + 1145) * 4 = 15720 From April 15 to April 27: (1130 + 1055 + 1145 + 350) * 13 = 48610 From April 28 to April 30: (1130 + 1055 + Show more…
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Akash M.
The credit card with the transactions described on the right uses the average daily balance method to calculate interest. The monthly interest rate is 1.5% of the average daily balance. Calculate parts a-d using the statement on the right. Transaction Description Transaction Amount Previous balance: $6340.00 March 1 Billing date March 5 Payment: $350.00 credit March 7 Charge: Restaurant $30.00 March 12 Charge: Groceries $90.00 March 21 Charge: Car Repairs $260.00 March 31 End of billing period Payment Due Date: April 9 a. Find the average daily balance for the billing period. Round to the nearest cent. The average daily balance for the billing period is $ (Round to the nearest cent as needed.) b. Find the interest to be paid on April 1, the next billing date. Round to the nearest cent. The interest to be paid on April 1 is $ (Use the answer from part a to find this answer. Round to the nearest cent as needed.) c. Find the balance due on April 1. The balance due on April 1 is $ (Use the answer from part b to find this answer.) d. This credit card requires a $10 minimum monthly payment if the balance due at the end of the billing period is less than $360. Otherwise, the minimum monthly payment is 1/36 of the balance due at the end of the billing period, rounded up to the nearest whole dollar. What is the minimum monthly payment due by April 9? The minimum monthly payment is $
Supreeta N.
You have maxed out your credit card and owe $4,100. Its interest rate is 21% each month, you make the minimum required payment of $37. Round the answer to the nearest cent. During September 20 through October 19 billing period, you pay the minimum required payment on October 1st. Find the average daily balance, the finance charge, and the new balance. Find October 20 through November 19 the payment was made in November 11. Find the average daily balance, the finance charge, and the new balance. Find November 20 through December 19 billing period. The payment was made on November 11. Find the average daily balance, the finance charge, and the new balance.
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