hi , could you please help me here , thanks Talika Sampson, an antiques dealer f
ID: 2730462 • Letter: H
Question
hi , could you please help me here , thanks
Talika Sampson, an antiques dealer from Miami, Florida, received her monthly billing statement for April for her MasterCard account. The statement indicated that she had a beginning balance of $600, on day 5 she charged $150, on day 12 she charged $300, and on day 15 she made a $200 payment. Out of curiosity, Talika wanted to confirm that the finance charge for the billing cycle was correct. What was Talika's average daily balance for April without new purchases? What was her finance charge on the balance in part (a) if her APR is 19.2 percent? What was her average daily balance for April with new purchases? What was her finance charge on the balance in part (c) if her APR is 19.2 percent? What was her finance charge using the two-cycle average daily balance if her average daily balance for March was $800?Explanation / Answer
a Average daily balance without purchases; Balance No Of Days Total Balance opening balance $600 from April 1-14 14 8,400 $400 daily balance from Apr 15 to 30 16 6,400 Total 30 14,800 Average Dailsy Balance =14800/30= $ 493.33 b when APR is 19.2% , Finance charge will be = 493.33*19.2%*30/365= $ 7.79 c Average daily balance with purchases; Balance No Of Days Total Balance opening balance $600 from April 1-4 4 2,400 Apr 5 to 11 daily balance $750 7 5,250 Apr 12 -Apr 14 @daily balance $1050 3 3,150 $850 balance from Apr 15 to 30 16 13,600 Total 30 24,400 Average daily balance with purchases=24400/30= $ 813.33 d when APR is 19.2% , Finance charge will be = =813.33*19.2%*30/365= $ 12.84 e Two Cycle average daily balance Average daily balance March 800.00 Average daily balance April= 813.33 Two Cycle average daily balance 806.67 Finance charge @19.2% APR = =806.67*19.2%*30/365 $ 12.73
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