You have been pricing a compact disc player in several stores. Three stores have the exact same
Question:
You have been pricing a compact disc player in several stores. Three stores have the exact same price of $300. Each of these stores charges 18 percent APR, has a 30-day free ride, 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 that you purchased the disc player on May 5 and that you made a $100 payment on June 15. What will the finance charge be for June if you made your purchase from Store A? from Store B? from Store C?
Step by Step Answer:
Personal Finance
ISBN: 978-1259453144
6th Canadian edition
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Arshad Ahmad, Jordan Fortino