Question
You have been pricing headphones in several stores. Three stores have the identical price of $500. Each of these stores charges 18 percent APR, has
You have been pricing headphones in several stores. Three stores have the identical price of $500. Each of these stores charges 18 percent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that Store A calculates the finance charge by using the average daily balance method, that Store B uses the adjusted balance method, and that Store C uses the previous balance method. Assume you purchased the headphones on May 5 and made a $100 payment on June 15.
What is the finance charge for June if you made the purchase from Store A; from Store B; from Store C? (Do not round your Intermediate calculations. Round your final answers to 2 decimal places. Omit the "$" sign in your response.)
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