Question
18. The balance on the Wooten's credit card on June 12, their billing date, was $402.90. For the period ending on (but not including) June
18. The balance on the Wooten's credit card on June 12, their billing date, was $402.90. For the period ending on (but not including) June 12, they had the following transactions:
June 13Charge: Tires$857.62
June 15Payment$275.00
July 1Charge: Clothing$38.09
July 8Charge: Dinner$32.16
And the Average Daily Balance was $969.84
a)Calculate the finance charge to be paid on July 12. The card has an APR of 22.1%.
(Hint: The number of days in the billing cycle is 30)
b)Find the New Balance on July 12.
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
978-1259024979
