Question
The credit card with the transactions described in the popup below uses the average daily balance method to calculate interest. The monthly interest rate is
The credit card with the transactions described in the popup below uses the average daily balance method to calculate interest. The monthly interest rate is
1.5%
of the average daily balance. Calculate parts a-d using the statement in the popup.
Transaction Description | Transaction Amount | |
---|---|---|
Previous balance, $2647.22 | ||
June 1 | Billing date | |
June 6 | Payment | $1300.00 credit |
June 8 | Charge: Gas | $36.15 |
June 9 | Charge: Groceries | $136.52 |
June 17 | Charge: Gas | $41.92 |
Charge: Groceries | $127.05 | |
June 27 | Charge: Clothing | $215.31 |
June 30 | End of billing period | |
Payment Due Date: July 9 |
a. Find the average daily balance for the billing period. Round to the nearest cent.
The average daily balance for the billing period is $
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