The Levy\'s credit card statement shows a balence of $1578.25 on march 23, the b

Question

The Levy's credit card statement shows a balence of $1578.25 on march 23, the billing date. the interest rate is 1.3% per month. For the period ending April 23, they had the following transactions:

March 26- Charge: party suppiles $76.98

March 30- Charge: restaurant meal $52.76

April 3-Payment $250.00

April 15- Charge: Clothing 190.52

April 22- Charge: Car repairs $190.85

Find the average daily balence for the billing period, the finance charge to be paid on april 23rd, and the balence due on april 23rd.

Explanation / Answer

Amount on 23 March is $ 1578.25

Interest on $ 1578.25 @ 1.3% per month from 23 March to 25 March (i.e. for 3 days)

[(1578.25 x 1.3 x 12 x 3)/365]/100 = $ 2.02

Amount on 26 March is $ 1578.25 + $ 76.98 + $ 2.02 = $ 1657.25

Interest on $ 1657.25 @ 1.3% per month from 26 March to 29 March (i.e. for 4 days)

[(1657.25 x 1.3 x 12 x 4)/365]/100 = $ 2.83

Amount on 30 March is $ 1657.25 + $ 52.76 + $ 2.83 = $ 1712.84

Interest on $ 1712.84 @ 1.3% per month from 30 March to 2 April (i.e. for 4 days)

[(1712.84 x 1.3 x 12 x 4)/365]/100 = $ 2.93

Amount on 3 April is $ 1712.84 + $ 250 + $ 2.93 = $ 1965.77

Interest on $ 1965.77 @ 1.3% per month from 3 April to 14 April (i.e. for 12 days)

[(1965.77 x 1.3 x 12 x 12)/365]/100 = $ 10.08

Amount on 15 April is $ 1965.77 + $ 190.52 + $ 10.08 = $ 2166.37

Interest on $ 2166.37 @ 1.3% per month from 15 April to 21 April (i.e. for 7 days)

[(2166.37 x 1.3 x 12 x 7)/365]/100 = $ 6.48

Amount on 22 April is $ 2166.37 + $ 190.85 + $ 6.48 = $ 2363.70

Interest on $ 2363.70 @ 1.3% per month from 22 April to 22 April (i.e. for 1 day)

[(2363.70 x 1.3 x 12 x 1)/365]/100 = $ 1.01

Amount on 23 April is $ 2363.70 + $ 1.01 = $ 2364.71

Average Daily Balence = (Day 1 Balance + Day 2 Balance + Day 3 Balance…....) / number of days in billing cycle

= (3*1578.25 + 4*1657.25 + 4*1712.84 + 12*1965.77 + 7*2166.37 +1*2364.71)/ 31

= ( 4734.75 + 6629 + 6851.36 + 23589.24 + 15164.59 + 2364.71)/31

= $ 1913.99

The balence due on 23 April = $ 2364.71

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