Question
On June 1, Brians credit card has a balance of $3,375.75. According to the terms of the cards lending agreement, an interest rate of 20%
On June 1, Brians credit card has a balance of $3,375.75. According to the terms of the cards lending agreement, an interest rate of 20% per year is assessed and the monthly finance charges are calculated using the Average Daily Balance (ADB) including purchases method.
During the month, Brian expects to make the purchases listed below and will make a payment of $253.18 on June 24, and has collected the following additional information:
Date | Purchases |
---|---|
June 8 | $102.39 |
June 10 | 1,722.13 |
June 22 | 1,184.19 |
June 28 | 15.13 |
Additional Information
Monthly interest rate | 1.67% |
Beginning card balance | $3,375.75 |
Days in the month | 30 |
Use the following table to help Brian estimate his monthly interest charge for June.
Dates | Number of Days | Daily Balance | Calculated Value |
---|---|---|---|
6/2 - 6/8 | 7 | $3,375.75 |
|
6/9 - 6/10 | 2 |
|
|
6/11 - 6/22 | 12 |
|
|
6/23 - 6/24 | 2 |
|
|
6/25 - 6/28 | 4 |
|
|
6/29 - 6/1 | 3 |
|
|
Total | 30 |
| |
Average Daily Balance With Purchases |
| ||
Finance Charge |
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