Last June 16, Mr. Smith bought a vacation package for his family for $10, 000. He paid for the package with his credit card. His card billing period runs from the 16th of each month to the 15th of the following month. The package is the only purchase he made with his card during the period June 16 July 15. On July 16 an account statement was issued by the credit card company requesting that he pay $10, 000 by August 6. Mr. Smith decided to pay $9, 999.99 on August 6, opting to repay the remaining $0.01 with the next statement. He did not make any purchase during the billing cycle July 16 August 15. On August 16 a new statement was issued. The statement showed a balance of $336.88. Mr. Smith immediately called his credit card company to declare that a mistake had been made. The company checked his file and replied that there was no mistake. Prove to Mr. Smith that the companys assertion is correct.

Reminder: For this study, you will need to use the Credit Cardholder Disclosure Statement available as a pdf file under Lecture Files on eClass.