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What is the method for calculating average daily balance, finance charge, and ne

ID: 2394476 • Letter: W

Question

What is the method for calculating average daily balance, finance charge, and new balance?

ER 14 HOMEWORK Question 10 (of 10) value 10.00 points Cody Lind's most recent credit card state, nent follows. His finance charge is 18% APR. 30-day biling cycle 9/2 Billing date 9/7 Payment 9/13 Charge: Kohl's 9/17 Payment 9/28 Charge: WalMart $1,200 previous balance $100 cr $350 $200 cr $50 Average daily balance Finance charge New balance 1245 References eBook & Resources Worksheet Difficulty: 2 Medium Check my work

Explanation / Answer

Average daily balance 1245 Finance charges 19 (1245*.18*30/360) New balance 1319 (1300+19)

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