Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Here is Reuben's credit card statement for the month of May. Date Transaction Transaction amount May 1 Beginning balance $2200.75 May 8 Purchase $97.09 May

image text in transcribed
image text in transcribed
Here is Reuben's credit card statement for the month of May. Date Transaction Transaction amount May 1 Beginning balance $2200.75 May 8 Purchase $97.09 May 11 Purchase $870.90 May 21 Payment $950.00 (a) Use the credit card statement to help fill in the table below. Note that there are 31 days in May. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. Date Transaction Transaction Unpaid Unpaid Number amount balance Number of days at that balance balance of days May 1 Beginning balance $2200.75 52200 75 days (from May through May ) $15.405.25 May 8 Purchase $97.09 $2297.84 days (from May 8 through May 10) May 11 Purchase $870.90 SI 10 days from May 11 through May 20) May 21 Payment $950,00 SE 11 days from May 21 through May 31) Totalt 31 days Total: $0 (b) Find the average daily balance. Write your answer to the nearest cent. s] (C) Suppose the credit card company charges an interest rate of 1.7% on the average daily balance for May found in part (b). How much interest will be charged? Write your answer to the nearest cent. (d) What will Reuben's beginning balance be for the month of June (including the interest for May found in part (c))? $ x 6

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

Introduction To Financial Models For Management And Planning

Authors: James R Morris, John P Daley

2nd Edition

1498765041, 9781498765046

More Books

Students also viewed these Finance questions