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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Personal Finance

ISBN: 978-1259453144

6th Canadian edition

Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Arshad Ahmad, Jordan Fortino

Question Posted: