If you are trying to build credit by using a credit card, each time you make a p
ID: 2384390 • Letter: I
Question
If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 12% APR and the following transactions?(Round your answer to the nearest cent.)
If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 12% APR and the following transactions?(Round your answer to the nearest cent.)
Explanation / Answer
Solution.
Opening Balance of Debt = $1168
During the moth Debited By = 152 + 325 + 65 + 75 + 350 = $967
Total Debt without interest = $1168 + $967 = $2,135
Calculation of Daily Periodic Rate = APR / 365
= 12% / 365
= .032876%
Now Averege Daily Balance = $2135 /30
= 71.16
Calculation of monthly interest charge is calculated :-
Balance x DPR x days in statement billing cycle = interest for that month’s statement
= 71.12 x .032876
= 2.3394
Interest of the month = $2,135 x 2.3394%
= $49.94
Total payble = $2135 + $49.94 = $2,184.94
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