Problem #1. You have a Visa credit card account with a 22.75% annual percentage rate calculated on the average daily balance. The billing date is the first day of each month, and the billing cycle is the number of days in that month. Your credit card balance on June 1 was $307. On June 9th you made a $139 purchase. You made another purchase, a $150 gift card, on June 25th. You made a $250 payment on July 27th. Show your work for all parts of the problem. (a) What is the average daily balance for June? (b) What is your finance charge on the account as of July 1st? (c) What is your new credit card balance?

Problem #1. You have a Visa credit card account with a 22.75% annual percentage rate calculated on the average daily balance. The billing date is the first day of each month, and the billing cycle is the number of days in that month. Your credit card balance on June 1 was $307. On June 9th you made a $139 purchase. You made another purchase, a $150 gift card, on June 25th. You made a $250 payment on July 27th. Show your work for all parts of the problem. (a) What is the average daily balance for June? (b) What is your finance charge on the account as of July 1st? (c) What is your new credit card balance?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Problem #1. You have a Visa credit card account with a 20.98% annual percentage rate calculated on the average daily balance. The billing date is the first day of each month, and the billing cycle is the number of days in that month. Your credit card balance on June 1 was $316. On June 9th you made a $125 purchase. You made another purchase, a $50 gift card, on June 25th. You made a $175 payment on June 28th. (a) What is the average daily balance for June? (b) What is your finance charge on the account as of July 1st? (c) What is your new credit card balance? Work MUST be shown
On May 1, the balance on your credit card is $573.26. On May 6, you make a purchase for $102.55. On May 9, you make a payment of $300. On May 17, you make a purchase for $22.16, and on May 28, you make a purchase for $41.78. Assume the billing date is the 1st of the month and the monthly finance charge is 2%. What is the average daily balance? $ What is the monthly finance charge? $ What is the balance at the start of the next month? $
You have a credit card with an APR of 16%. You begin with a balance of $750. In the first month you make a payment of $550 and you make charges amounting to $400. In the second month you make a payment of $300 and you make new charges of $600. Complete the following table. (Round your answers to the nearest cent.) Previous balance Payments Finance charge New balance Purchases Month 1 $750 Month 2 %24 24 eBook
Suppose you have a revolving credit account at an annual percentage rate of 12%, and your previous monthly balance is $381.79. Find your new balance (in $) if your account showed the following activity. Use the unpaid balance method. (Round your answer to the nearest cent.) Statement of Account Billing cycle: July 1–31 DATE DESCRIPTION OF TRANSACTIONS CHARGES July 04 Kit and Capoodle Pets $109.08 July 08 Payment 61.00 July 16 Cash advance 94.82 July 22 Mountain Vineyards 31.37 July 29 Vu Video (credit) 97.97 %24
On November 1, the balance on your credit card is $533.76. On November 6, you make a purchase for $49.30. On November 8, you make a payment of $155. On November 12, you make a purchase for $76.51, and on November 25, you make a purchase for $32.64. Assume the billing date is the 1st of the month and the monthly finance charge is 1.7%. What is the average daily balance? $ What is the monthly finance charge? $ What is the balance at the start of the next month? $
Calculate the average daily balance (in $) for October for a revolving credit account with a previous month's balance of $120 and the following activity. (Round your answer to the nearest cent.) Date Activity Amount October 3 Cash advance $50.00 October 7 Payment $75.00 October 10 Purchase $28.59 October 16 Credit $10.00 October 25 Purchase $124.60 average daily balance = $?
You have a credit card with an APR of 15%. You begin with a balance of $800. In the first month you make a payment of $300 and you make charges amounting to $100. In the second month you make a payment of $200 and you make new charges of $500. Determine all values in the given table. (Enter all answers to the nearest cent.) Month 1 Month 2 Previous Balance mil m21 Payments m12 m22 Purchases m13 M23 Finance Charge m14 m24 New Balance m15 m25
You have a credit card that charges an interest rate of 1.8% compounded monthly. The table below shows your activity for the month of December. Date Activity Amount December 1 Beginning Balance 1327.24 December 9 Purchase 28.84 December 10 Payment −150 December 16 Purchase 97.76 December 22 Purchase 14.56 December 23 Purchase 54.47 December 31 Closing Date What is the statement balance due for December?
Suppose you open a credit card and charge $125 to the account on the first of each month...
Calculate the average daily balance (in $) for October for a revolving credit account with a previous month's balance of $120 and the following activity. (Round your answer to the nearest cent.) Date Activity Amount October 3 Cash advance $50.00 October 7 Payment $75.00 October 10 Purchase $26.59 October 16 Credit $10.00 October 25 Purchase $122.60
Suppose your VISA card calculates interest using the average daily balance method, and the monthly interest rate is 1.75%. The itemized billing for the month of April is shown below. Detail Unpaid balance Charge Charge Charge Payment received Last day of billing period Payment due date Date April 1 April 3 April 11 April 15 April 28 April 30 May 7 Amount 95 755 395 890 845 (a) Find the average daily balance. $ 1,453.17 (b) Find the interest due for this month. $ 25.43 Or (c) Find the total balance owed on the last day of the billing period. $ (d) This credit card requires a $20 minimum payment or 1/36 of the amount due, whichever is higher. What is the minimum monthly payment due for this month? $
Find the average daily balance for the credit card with the following transactions. Assume one month between billing dates using the proper number of days in the month. Then find the finance charge if interest is 1.5% per month on the average dally balance. Finally, find the new balance. Previous Balance: $556.32 Billing date: July 9 July 15, Return, $114.45 July 17, Purchase, $98.12 July 25, Purchase, $76.12 August 7, Payment, $110 What is the average daily balance? What is the finance charge? What is the new balance?

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