Instructor-created question

The credit card with the transactions described on the right uses the average daily balance method to calculate interest. The annual interest rate is 30

%

of the average daily balance. Calculate parts a-c using the statement on the right.

Transaction Description

Transaction Amount

Previous balance, $6270.00

March 1 Billing date

March 5 Payment

$250.00

credit

March 7 Charge: Restaurant

$30.00

March 12 Charge: Groceries

$100.00

March 21 Charge: Car Repairs

$280.00

March 31 End of billing period

Payment Due Date: April 9

a. Find the average daily balance for the billing period. Round to the nearest cent.

The average daily balance for the billing period is $nothing

.

(Round to the nearest cent as needed.)

b. Find the interest to be paid on April 1, the next billing date. Round to the nearest cent.

The interest to be paid on April 1 is $nothing

.

(Use the answer from part a to find this answer. Round to the nearest cent as needed.)

c. Find the balance due on April 1.

The balance due on April 1 is $nothing

.