Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Here is Kala's credit card statement for the month of December. Date Transaction December 1 Beginning balance December 4 Purchase Transaction amount $1200.25 $48.08 $430.30

image text in transcribedimage text in transcribed

Here is Kala's credit card statement for the month of December. Date Transaction December 1 Beginning balance December 4 Purchase Transaction amount $1200.25 $48.08 $430.30 $250.00 December 8 Purchase December 22 Payment (a) Use the credit card statement to help fill in the table below. Note that there are 31 days in December. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. Date Transaction December 1 Beginning balance December 4 Purchase December 8 Purchase Transaction Unpaid Number of days at that balance amount balance $1200.25 $1200.25 3 days (from December 1 through December 3) $48.08 $1248.33 days (from December 4 through December 7) $430.30 $ 14 days (from December 8 through December 21) $250.00 $10 days (from December 22 through December 31) Total: 31 days Unpaid Number balance of days $3600.75 $ $0 $ Total: $] December 22 Payment (b) Find the average daily balance. Write your answer to the nearest cent. si (C) Suppose the credit card company charges an interest rate of 1.4% on the average daily balance for December found in part (b). How much interest will be charged? Write your answer to the nearest cent. $ (d) What will Kala's beginning balance be for the month of January (including the interest for December found in part (c))? $

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: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Finance questions