Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. Donny has a habit of spending spree habit, particularly using his credit card (PB Platinum Visa Credit Card). He prefers to pay only the

Mr. Donny has a habit of spending spree habit, particularly using his credit card (PB Platinum Visa Credit Card). He prefers to pay only the minimum amount each time the statement arrives. On 1st April 2020, his outstanding balance was already a whopping RM15,500. However, that did not deter him from keep on spending. On 4th April, he had bought through online purchase, a pair of jeans costing RM150, a sunglass costing RM200 and a designer shirt at RM180. On 10th April, he had purchased a smart innovative television at Samsung store and this cost RM9,600. Since it was a big amount, the store, collaborated with PB Platinum Visa offered customers who made large purchase to turn into smaller payments with an instalment payment scheme. Mr. Donny thus agreed to this instalment payment of 12 months and the first instalment was effective on the date of purchase. Other transactions that Mr. Donny paid for using his credit card were: Date Transactions RM 12 April Groceries at online Urban Fresh 280 13 April Lazada online 150 14 April Shopee online 120 16 April Amazon.com (e-book) at USD$30 @RM4.27 20 April Carousell online 350 There was also a refund of RM250 a transaction wrongly debited to his account in March 2020. The refund would be credited to his account on 21 April 2020. Using average daily balance method including current purchases, COMPUTE the following: a) Average daily balance b) Total interest charge c) Amount of outstanding balance d) Minimum payment e) Outstanding payment after minimum payment Assume that the interest charged is 18% per annum on the unpaid balance and the minimum payment required is 5%.

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

More Books

Students also viewed these Finance questions

Question

.

Answered: 1 week ago