20 of 20 (19 complete) HW X Instructor-created question The credit card with the

Question

20 of 20 (19 complete) HW X Instructor-created question The credit card with the transactions described in the popup the statement in the popup. mnannuali ienstaa,18% of the average daily balan El Cick he con to view the cresit cand stalementCredit Card Statement a. Find the average daily balance for the billing period. Roun The average daily balance for the billing period is Round to the nearest cent as needed.) b. Find the interest to be paid on July 1, the nesxt billingatune 6 Payment The interest to be paid on July 1 is s (Use the answer from part a to find this answer. Round to the ransaction Amount balance, $2654.08 Billing date 1000.00 credit 35.13 June 8 Charge: Gas June 9 Charge:Gr ne 17 Charge: Gas Charge: 27 Find the balance de on Aly 1. 214.7 The balance due on July 1 is s (Use the answer from part b to find this answer) 30 End of period Payment Due Date July 9 Print Done Enter your answer in the edit fields and then click Check A All parts showing Clear Al

Explanation / Answer

Solution:- Calculation of average daily balance Date Transactios Amount Balance O/s Days Product Jun-01 Previous balance - $2,654.08 5 $13,270.40 Jun-06 Payment -$1,000.00 $1,654.08 2 $3,308.16 Jun-08 Charge:-Gas $35.13 $1,689.21 1 $1,689.21 Jun-09 Charge: Groceries $137.65 $1,826.86 8 $14,614.88 Jun-17 Charge: Gas &Groceries $167.70 $1,994.56 10 $19,945.60 Jun-27 Charge:- Clothing $214.75 $2,209.31 4 $8,837.24 Total 30 $61,665.49 a) Average daily balance = Total product balance/Billing cycle =$61,665.49/30 =$2055.52 b) Interest charge = Average daily balance*18%*30/360 =$2,055.52*18%*30/360 =$30.83 c) The balance due on July 1 = $2,209.31 Please feel free to ask if you have any query in the comment section.

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