Use the average daily balance method to compute the finance charge on the credit card account for the month of August (31 days). The starting balance from the previous month is $220. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 24% on the account and that the billing date is August 1st. ..... Date Transaction August 7 Made payment of $76 August 13 Charged $140 for hiking boots August 18 Charged $21 for gasoline August 22 Charged $35 for restaurant meal The finance charge for the month of August is $______
Use the average daily balance method to compute the finance charge on the credit card account for the month of August (31 days). The starting balance from the previous month is $220. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 24% on the account and that the billing date is August 1st. ..... Date Transaction August 7 Made payment of $76 August 13 Charged $140 for hiking boots August 18 Charged $21 for gasoline August 22 Charged $35 for restaurant meal The finance charge for the month of August is $______
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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Question
Use the average daily balance method to compute the finance charge on the credit card account for the month of August (31 days). The starting balance from the previous month is
$220.
The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of
24%
on the account and that the billing date is August 1st......
|
Date
|
Transaction
|
|---|---|
|
August 7
|
Made payment of
$76
|
|
August 13
|
Charged
$140
for hiking boots |
|
August 18
|
Charged
$21
for gasoline |
|
August 22
|
Charged
$35
for restaurant meal |
The finance charge for the month of August is
$______
(Round to the nearest cent as needed.)
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