Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On March 1, Rina's credit card has a balance of $4.501.00. According to the terms of the card's lending agreement, an interest rate of 12%
On March 1, Rina's credit card has a balance of $4.501.00. According to the terms of the card's lending agreement, an interest rate of 12% per year is assessed and the monthly finance charges are calculated using the Average Daily Balance (ADB) including purchases method. During the month, Rina expects to make the purchases listed below and will make a payment of $337.58 on March 23, and has collected the following additional information Date Purchases March 6 $391.25 March 12 43.8 March 20 46.9 March 27 1.160.16 Additional Information Monthly interest rate 1.00% Beginning card balance Days in the month $4,501.00 31 Use the following table to help Rina estimate her monthly interest charge for March. Dates Number of Days 5 Daily Balance $4,501.00 3/2 - 3/6 3/7-3/12 6 3/13-3/20 3/21-3/23 3/24 - 3/27 3/28 - 3/1 Total Average Daily Balance With Purchases Finance Charge One way by which Rina can increase her finance charges, everything else remaining constant, is to: Buy a larger number of more expensive items using your card. Make fewer, less expensive purchases. Make larger or more frequent payments. 8 3 4 5 31 Calculated Value $4,501.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started