Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Is my answer current ? Finance change will not change, even we have a new 1000 credit purchase? Your credit card's annual interest rate is

Is my answer current ? Finance change will not change, even we have a new 1000 credit purchase?
image text in transcribed
image text in transcribed
Your credit card's annual interest rate is 18 percent and you begin the month with a previous balance of $1,000. In addition, your payments against your credit card balance this month are $900, which are made on the 15th of the month. A $1000 credit purchase is made on 20th January. to the billede afer the fame $1.00 purchase Example Your credit card's annual interest rate is 15 peront and you begin the menth with a previous balance of 1.000. In addition, your payments against your credit card balance this month 900, which are made on the 15th of the month. You make no additional purchases during the month Method One: Adjusted Balance Method 1ST 35 th balance $1,000 payment than 18 25 balance - $100 1. adjneed bulan se = $10.00 - $oo = $lo, finance charge = $loo y 189/12 = $15 balance = $100+ $1.5-$101.5 > TF2:23 14:27 102BER 982 + 2. previous bilance = $1,7% 3. average daily frances= ($ipoxl4d $100 finance charge = $100x187/2=$15 x1 days)/30 = $530 0 = balance=115 finance charge = $320x1872-678 balance = 1-76. #A. $1900 credit purchase on 25" of the month # Dadjusted finance charge = $1: balance = $100+ $1.5+$1000 =$101.5 @ previous finance charge - $ 15 balance = $300 +$15+$1,000 = $ IS ($9000 x64df+100X15+ $600x11d)/20=88.667 finance charge =$13.3 balance = $100+ $1.000 +$1.32$||13.3 > B average o

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

Handbook Of Income Distribution Volume 2A

Authors: Anthony B. Atkinson, Francois Bourguignon

1st Edition

0444594280, 978-0444594280

More Books

Students also viewed these Finance questions

Question

2 How could a supply chain approach overcome some of the problems?

Answered: 1 week ago

Question

Need MAT 202 statistics final through straighter line

Answered: 1 week ago