Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Here is Shen's credit card statement for the month of June. Date Transaction June 1 Beginning balance June 8 Purchase June 21 Purchase June 25

image text in transcribedimage text in transcribed

Here is Shen's credit card statement for the month of June. Date Transaction June 1 Beginning balance June 8 Purchase June 21 Purchase June 25 Payment Transaction amount $2600.75 $89.06 $910.90 $750.00 (a) Use the credit card statement to help fill in the table below. Note that there are 30 days in June. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. Date Transaction June 1 Beginning balance June 8 Purchase June 21 Purchase June 25 Payment Transaction Unpaid Number of days at that balance amount balance $2600.75 $2600.75 7 days (from June 1 through June 7) $89.06 $2689.81 | days (from June 8 through June 20) $910.90 $0 4 days (from June 21 through June 24) $750.00 $0 6 days (from June 25 through June 30) Total: 30 days Unpaid Number balance of days $18,205.25 $ $1] $U Total: $0 x 6 ? (b) Find the average daily balance. Write your answer to the nearest cent. (c) Suppose the credit card company charges an interest rate of 1.5% on the average daily balance for June found in part (b). How much interest will be charged? Write your answer to the nearest cent. (d) What will Shen's beginning balance be for the month of July (including the interest for June 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

The Audit Process Principles Practice And Cases

Authors: Iain Gray, Louise Crawford, Stuart Manson

7th Edition

1473760186, 9781473760189

More Books

Students also viewed these Accounting questions