The balance on Ramon Felipe \'s credit card on January 10, his billing date was
ID: 2589026 • Letter: T
Question
The balance on Ramon Felipe 's credit card on January 10, his billing date was $372.65. For the period ending February 10, Ramon had the following transactions to the right. January 22 : charge $40.78 for meal.January 24: payment $150.00 . February 3 charge $39.81 for lawn ornaments. February 5 charge $103.79 for microwave oven.
Find the daily balance for the billing period.
Find the finance charge to be paid on February 10.Assume an interest rate of 1.2% per month.
Find the balance due on February 10.
Explanation / Answer
Calculation of Average Daily Balance Days of Billing Cycle Beginning Balance Charges Payments Ending Balance 11-Jan 372.65 - - 372.65 12-Jan 372.65 - - 372.65 13-Jan 372.65 - - 372.65 14-Jan 372.65 - - 372.65 15-Jan 372.65 - - 372.65 16-Jan 372.65 - - 372.65 17-Jan 372.65 - - 372.65 18-Jan 372.65 - - 372.65 19-Jan 372.65 - - 372.65 20-Jan 372.65 - - 372.65 21-Jan 372.65 - - 372.65 22-Jan 372.65 40.78 - 413.43 23-Jan 413.43 - - 413.43 24-Jan 413.43 - 150.00 263.43 25-Jan 263.43 - - 263.43 26-Jan 263.43 - - 263.43 27-Jan 263.43 - - 263.43 28-Jan 263.43 - - 263.43 29-Jan 263.43 - - 263.43 30-Jan 263.43 - - 263.43 31-Jan 263.43 - - 263.43 1-Feb 263.43 - - 263.43 2-Feb 263.43 - - 263.43 3-Feb 263.43 39.81 - 303.24 4-Feb 303.24 - - 303.24 5-Feb 303.24 103.79 - 407.03 6-Feb 407.03 - - 407.03 7-Feb 407.03 - - 407.03 8-Feb 407.03 - - 407.03 9-Feb 407.03 - - 407.03 10-Feb 407.03 - - 407.03 10,608.97 Average Daily Balance = $10,608.97 / 31 Days Average Daily Balance = $342.2248 or say $342.22 (Approx.) Finance Charge = 1.20% X $342.22 = $4.106698 or say $4.11 (Approx.) Balance Due on Feb -10 = $407.03 + $4.11 Balance Due on Feb -10 = $411.14
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