Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Maryam has just received her credit card statement for the period covering 15th January to 14th February 2021. On 5th January 2021, she has bought

Maryam has just received her credit card statement for the period covering 15th January to 14th February 2021. On 5th January 2021, she has bought a new hand phone of RM3,600 using zero interest payment plan for 12 months. During the purchase date, the first payment had been affected and the subsequent payments will be debited to her credit card account on every 5th on the consecutive months. On the 15th January 2021 she has a carried forward balance of RM5,300. The following transactions were also incurred:

Date Transactions January 17 Bought return flight ticket to Kota Kinabalu, Sabah for RM585

January 21 Purchased groceries at Cold Storage for RM325

January 22 Deposited RM3,500 at HSBC Melaka for card monthly repayment

January 26 Purchased sofa furniture at SSF for RM4,950

February 2 Dinner at Tony Roma's for RM250

February 12 Pump in petrol at Petronas Jalan Hang Tuah for RM85

February 13 Purchase khat painting at Kufi Gallery for RM750

The prevailing interest charged on credit card is 18 percent per annum on the unpaid balance and minimum payment is 5 percent. Using the average daily balance method including current purchases, compute the following:

a) Average daily balance

b) Total interest charged

c) Total Outstanding balance

d) Minimum payment

e) Outstanding payment after minimum payment

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

Strategies For Monetary Policy

Authors: John H. Cochrane, John B. Taylor

1st Edition

0817923748, 978-0817923747

More Books

Students also viewed these Finance questions