Credit Card Statement t Due Date $196.31 514,13259 Payment Due Statement Billing Period: 04/16-05/1s 50.00 Other Credits 50.00 $0.00 0.00 560.10 Past Due Amoun 50.00 A statement showing a credit card that operates on revolving credit" is at the end of this document. The last page of the statement shows how the bank calculates interest. Use Excel to confirm the bank's calculation of interest charged on this account for the given time period. Do this by creating a spreadsheet reflecting daily transactions updating the borrower's balance each day, Show the running daily balance for each day of the given time period as calculated by the bank's explanation of how they calculate interest. If your total interest does not match that charged by the bank, figure out how the bank arrived at the different amount (that is: manipulate the numbers within the bounds of the legal description to match the bank's interest charges). Then explain (on the spreadsheet) how you think the bank could justify the different interest amount. Be aware that banks are very clever in finding ways to be sure any rounding will result in a very small amount of money in their favor. When complete, upload your spreadsheet using the appropriate link on Moodle. Trans Date Posting Date 20-Apr Transaction Description Payment Received Checkfree ($250.00) 20-Apr Total Summary of Fees and Interest Charged Interest Charge on Balance Transfers 557.31 Total Interest for this Period 557.31 Posting Date Note: Your spreadsheet should show daily entries into the following columns: . Day of billing period (April 16 is Day 1) e Date Total Fees for this Period Calculation-30 Days in Bil Interest Balance . Starting Balance Subject to Percentage Interest Interest Rate Rate (APR) Charge e Interest Ending Balance $0.00 7 24%(v) $0.00 Current Purchases Show these in a table with column headers. Use the sums of the columns to answer the above questions. An example of column headings for your spreadsheet is shown here: lance Transfers Current Balance Transfers/Checks $0.00 724 $0.00 $29.33 Balance Transfer/Check Incentive $7,136.33 4.99% Date Start Bal End Bal Balance Transfer/Check Incentive 56,80741 4.99% $27.98 Advances You should have 30 rows below the column setting representing each of the 30 days in the statement time period. As stated above, the first row just below your headings is Day 1, April 16 Your grade for this assignment will be based on accurately organized data in properly labeled columns, and correct totals as determined by formulas in your spreadsheet. Current Cash Advances 29.99%(v) $0.00 $57.31 How we will calculate your balance: We use a method called "daily balance (including new purchases)". To determine the amount of the interest to be charged on your Account we first calculate the "Balance Subject to Interest Rate" separately for Purchases, for Balance Transfers, and for Cash Advances. We apply the applicable Daily Periodic Rate (the "DPR") (the DPR for each category is the applicable APR shown on the front of the statement divided by 365), to each of the applicable daily balances for i) Purchases, ii) Balance Transfers and ii) Cash Advances. The daily balances for Purchases, for Balance Transfers and for Cash Advances are each calculated separately and determined as follows: We take the beginning balances for each transaction type on your Account each day, including any interest calculated on the previous day's balance, add to the respective balances any new transaction, subtract any payments or credits and make any other applicable adjustment(s). This agreement provides for compounding of interest. A credit balance is treated as a balance of zero. If you multiply the "Balance Subject to Interest Rate" for each balance category as shown on your monthly billing statement by the number of days in the billing period and then multiply each sum by the applicable DPR, the results will be the interest assessed, except for minor variations caused by rounding Credit Card Statement t Due Date $196.31 514,13259 Payment Due Statement Billing Period: 04/16-05/1s 50.00 Other Credits 50.00 $0.00 0.00 560.10 Past Due Amoun 50.00 A statement showing a credit card that operates on revolving credit" is at the end of this document. The last page of the statement shows how the bank calculates interest. Use Excel to confirm the bank's calculation of interest charged on this account for the given time period. Do this by creating a spreadsheet reflecting daily transactions updating the borrower's balance each day, Show the running daily balance for each day of the given time period as calculated by the bank's explanation of how they calculate interest. If your total interest does not match that charged by the bank, figure out how the bank arrived at the different amount (that is: manipulate the numbers within the bounds of the legal description to match the bank's interest charges). Then explain (on the spreadsheet) how you think the bank could justify the different interest amount. Be aware that banks are very clever in finding ways to be sure any rounding will result in a very small amount of money in their favor. When complete, upload your spreadsheet using the appropriate link on Moodle. Trans Date Posting Date 20-Apr Transaction Description Payment Received Checkfree ($250.00) 20-Apr Total Summary of Fees and Interest Charged Interest Charge on Balance Transfers 557.31 Total Interest for this Period 557.31 Posting Date Note: Your spreadsheet should show daily entries into the following columns: . Day of billing period (April 16 is Day 1) e Date Total Fees for this Period Calculation-30 Days in Bil Interest Balance . Starting Balance Subject to Percentage Interest Interest Rate Rate (APR) Charge e Interest Ending Balance $0.00 7 24%(v) $0.00 Current Purchases Show these in a table with column headers. Use the sums of the columns to answer the above questions. An example of column headings for your spreadsheet is shown here: lance Transfers Current Balance Transfers/Checks $0.00 724 $0.00 $29.33 Balance Transfer/Check Incentive $7,136.33 4.99% Date Start Bal End Bal Balance Transfer/Check Incentive 56,80741 4.99% $27.98 Advances You should have 30 rows below the column setting representing each of the 30 days in the statement time period. As stated above, the first row just below your headings is Day 1, April 16 Your grade for this assignment will be based on accurately organized data in properly labeled columns, and correct totals as determined by formulas in your spreadsheet. Current Cash Advances 29.99%(v) $0.00 $57.31 How we will calculate your balance: We use a method called "daily balance (including new purchases)". To determine the amount of the interest to be charged on your Account we first calculate the "Balance Subject to Interest Rate" separately for Purchases, for Balance Transfers, and for Cash Advances. We apply the applicable Daily Periodic Rate (the "DPR") (the DPR for each category is the applicable APR shown on the front of the statement divided by 365), to each of the applicable daily balances for i) Purchases, ii) Balance Transfers and ii) Cash Advances. The daily balances for Purchases, for Balance Transfers and for Cash Advances are each calculated separately and determined as follows: We take the beginning balances for each transaction type on your Account each day, including any interest calculated on the previous day's balance, add to the respective balances any new transaction, subtract any payments or credits and make any other applicable adjustment(s). This agreement provides for compounding of interest. A credit balance is treated as a balance of zero. If you multiply the "Balance Subject to Interest Rate" for each balance category as shown on your monthly billing statement by the number of days in the billing period and then multiply each sum by the applicable DPR, the results will be the interest assessed, except for minor variations caused by rounding