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On February 3, the billing date, Carol Ann Bluesky had a balance due of $120.22 on her credit card. Her Feb. 7 bank charges an
On February 3, the billing date, Carol Ann Bluesky had a balance due of $120.22 on her credit card. Her Feb. 7 bank charges an interest rate of 125% per month and uses the average daily balance method. She Feb. 10 made the transactions described in the table during the month Charge: Art supplies Payment Charge Flowers delivered Charge: Musik CD $2899 $100.00 $6121 $10.52 a) Find Carol Ann's average daily balance for the billing period from February 3 to March 3. Assume it is not a leap year b) Find the finance charge to be paid on March 3 c) Find the balance due on March 3 d) Compare the result obtained to those obtained using the previous balance method. a) The average daily balance for the biling period was (Round to the nearest cent as needed.) b) The finance charge to be paid on March 3 is (Round to the nearest cent as needed.) c) The balance due on March 3 is (Round to the nearest cent as needed.) d) Using the previous balance method, the finance charge is $1.50 and the balance due is $122.44 How do the results obtained using the average daily balance method compare to those obtained using the previous balance method? Choose the correct answer below
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