The credit card with the transactions described in the table below uses the aver
ID: 3110457 • Letter: T
Question
The credit card with the transactions described in the table below uses the average daily balance method to calculate interest. The monthly interest rate is 1.3% of the average daily balance.
Find the average daily balance for the billing period. Round to the nearest cent.
Find the interest to be paid on July 1st, the next billing date. Round to the nearest cent.
Find the balance due on July 1st.
Transaction Description
Transaction Amount
Previous balance, $2649.16
June 1 Billing Date
June 6 Payment
$1100.00 credit
June 8 Charge: Gas
$35.22
June 9 Charge: Groceries
$138.31
June 17 Charge: Gas
Charge: Groceries
$42.17
$126.71
June 27 Charge: Clothing
$213.88
June 30 End of billing period
Transaction Description
Transaction Amount
Previous balance, $2649.16
June 1 Billing Date
June 6 Payment
$1100.00 credit
June 8 Charge: Gas
$35.22
June 9 Charge: Groceries
$138.31
June 17 Charge: Gas
Charge: Groceries
$42.17
$126.71
June 27 Charge: Clothing
$213.88
June 30 End of billing period
Explanation / Answer
M= 35.22+138.3+42.17+126.71+213.88= 556.28
average daily balance= 556.28/5= 111.256
Total balance= (2649.16+556.28)-1100
= $2105.44
now interest per month is 1.3%
thus 1.3% of $2105.44 is $27.37
So the amount due is , 2105.44+27.37= $2132.81
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.