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dhn Anna H 5 16 17 18 19 20 This Question: 1 ptThis Test: 20 pts Time Limit: 04:

ID: 2753399 • Letter: D

Question

dhn Anna H 5 16 17 18 19 20 This Question: 1 ptThis Test: 20 pts Time Limit: 04:00:0017 of 20 complete Elizabeth went on a fabulous yacation in May and racked up a lot of charges on her credit card. When it came time to pay her t Amount of June credit card bill, she left a balance of $1150.00. Elizabeth's Date purchase/payment credit card billing cycle runs from the 19th of each month to the 18th of the next month, and her interest rate is 17.5%. She started the billing cycle June 19-July 18 with a previous balance of$1150.00. In addition she made three purchases, .. 6/21 $182.49 | 630 7/5 $94.31 7/15 Payment $460.00 with the dates and amounts shown in the table to the right. On00:00 $50.00 July 15 she made an online payment of $460.00 that was credited to her balance the same day. Complete parts a through c. More a. Find the average daily balance on the credit card account for the billing cycle June 19-July 18. The average daily balance for the billing cycle is $1,334.67 (Round to the nearest cent as needed.) b. Compute the interest charged for the billing cycle June 19-July 18. The interest to be paid on July 19 is S19201. Round to the nearest cent as needed.) - Find the halance on the acemint at the rnd af the lune 10.Inlv 18 hilline ovcle Enter your answer in each of the answer boxes halance on the acenint at the end of the Iune 19-Inlv 18 hillino vcle Submit Test Previous Question Next Question

Explanation / Answer

Answer: a)

June-july

19 june

$1150

20 june

$1150

21 june

$1150+$182.49=$1332.49

22 june

$1332.49

23 june

$1332.49

24 june

$1332.49

25 june

$1332.49

26 june

$1332.49

27 June

$1332.49

28 june

$1332.49

29 June

$1332.49

30 June

$1332.49+$50=

$1382.49

1 july

$1382.49

2 July

$1382.49

3 July

$1382.49

4 July

$1382.49

5 July

$1382.49+$94.31=

$1476.8

6 July

$1476.8

7 July

$1476.8

8 July

$1476.8

9 July

$1476.8

10 July

$1476.8

11 July

$1476.8

12 July

$1476.8

13 July

$1476.8

14 July

$1476.8

15 July

$1476.8-$460=

$1016.8

16 July

$1016.8

17 July

$1016.8

18 July

$1016.8

19 July

New cycle begins

Another way to find the Average Daily Balance without using a calendar is to (i) Find the number of days that the balance did not change between each transaction. Count the first day in the period, but not the last day. (ii) Multiply the balance due by the number of days the balance did not change. (iii) Find the sum of the products. (iv) Divide sum by 30.

Date                Balance Due                Number of Days Balance        (Balance)(Days)

                                                            Did not Change

19 june            $1150                                     2                                   ($1150)(2) = $2300

21 june            $1332.49                                 9                                  ($1332.49)(9) = $11992.41

30 june            $1382.49                                 5                                  ($1382.49)(5) = $6912.450

July 5               $1476.8                                   10                                ($1476.8)(10)= $14768

July 15             $1016.8                                   4                                  ($1016.8)(4) = $4067.2

                                                                                                            Sum = $40040.06       

Average Daily Balance = $40040.06/30 = $1334.67


Answer:b)

                        I = $1334.67 x 17.5/100x 30/365 = $19.20

Answer:c)

       $1016.8 + $19.20=$1036

19 june

$1150

20 june

$1150

21 june

$1150+$182.49=$1332.49

22 june

$1332.49

23 june

$1332.49

24 june

$1332.49

25 june

$1332.49

26 june

$1332.49

27 June

$1332.49

28 june

$1332.49

29 June

$1332.49

30 June

$1332.49+$50=

$1382.49

1 july

$1382.49

2 July

$1382.49

3 July

$1382.49

4 July

$1382.49

5 July

$1382.49+$94.31=

$1476.8

6 July

$1476.8

7 July

$1476.8

8 July

$1476.8

9 July

$1476.8

10 July

$1476.8

11 July

$1476.8

12 July

$1476.8

13 July

$1476.8

14 July

$1476.8

15 July

$1476.8-$460=

$1016.8

16 July

$1016.8

17 July

$1016.8

18 July

$1016.8

19 July

New cycle begins