Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

9) The following problem involves a credit card that calculates interest using the average daily balance method. The monthly interest rate is 1.5% of the

image text in transcribed
9) The following problem involves a credit card that calculates interest using the average daily balance method. The monthly interest rate is 1.5% of the average daily balance. The transactions that occurred during the March 1 - March 31 billing period are shown below. Show ALL work. Use the blank table on the next page. a. Find the average daily balance for the billing period. Round to the nearest cent. b. Find the interest to be paid on April 1, the next billing date. Round to the nearest cent. c. Find the balance due on April 1. d. What is the minimum monthly payment for the balance tha is due at the end of the billing period. (round to the nearest whole dollar). Transaction Amount Transaction Description Previous balance: $3150.00 March 1 Billing date March 4 Payment March 6 Charge: Furniture March 15 Charge: Medical March 21 Charge: Books March 29 Charge: Groceries March 31 End of billing period Payment Due Date: April 1 $ 400.00 credit $ 1200.00 $ 150.00 $ 82.50 $ 145.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

\f

Answered: 1 week ago