Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: The daily balance method totals your finance charges for each day of the month. To do this…
Q: Calculate the finance charge for a credit card that has the given average daily balance and interest…
A: Charges that must be paid in order to avail of the credit card services are referred to as finance…
Q: pose that on January 1 you have a balance of $6200 on alculate your monthly payments. /hen the card…
A: The given problem can be solved using PMT function in excel. PMT function computes installment…
Q: be received and recorded, and that the month is 30 days long. (Round your answers to the nearest…
A: Finance charges are a way for a lender to get compensated for supplying cash or giving credit to a…
Q: the apr on the card is 12%, and you are not going to use the cardinal paid in full. assume you owe…
A: Credit debt = $1,383 Interest Rate = 12% APR Monthly Payment = 140
Q: On August 10, a credit card account had a balance of $365. A purchase of $62 was made on August 15,…
A: In credit cards, we can say that finance charges include interest and transaction fees charged on…
Q: Using the unpaid balance method, find the current month's finance charge on a credit card account…
A: The Finance charge is basically the expense or cost which one incurs whether being the individual,…
Q: For the credit card account, assume one month between billing dates (with the appropriate number of…
A: Average balance is calculated by dividing the adjusted balance with total number of days.
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: The adjusted balance method is indeed an accounting technique that calculates finance charges on the…
Q: A credit card account had a balance of P 5 000 on October 12. A purchase of P1500 was made on…
A: Solution Given Balance on October 12 5000 Purchase made on October 15 1500 Payment…
Q: David received credit card applications from two different banks. The interest terms from the banks…
A: Effective annual interest is the rate that takes into account the impact of the compounding. It is…
Q: Credit card issuers must by law print the annual interest rate they charged borrowers. If the annual…
A: Annual interest rate = 15% Compounding = Monthly Number of compounding per year = 12
Q: A credit card has an average daily balance of $2,861.56 and the monthly periodic rate is 1.295%.…
A: Average Daily Balance of Credit Card = $2,861.56 Monthly Interest Rate = 1.295%
Q: In John Balfour's credit card account interest is charged on the average daily balance. The cycle…
A: Firstly , calculate the average daily balance : Period Days Balance amount Total days amount…
Q: The credit card with the transactions described in the popup below uses thne average daily balance…
A: Average daily balance ( round off ) $1798
Q: A credit card account had a balance of $959 on May 5. A purchase of $285 was made on May 17, and a…
A: Average daily balance is a accounting method that calculates interest charged by considering the…
Q: Calculate the finance charge for a credit card that has the given average daily balance and interest…
A: Finance charge It is the charge related to money borrowed over a period of time. It includes the…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: The question is based on the calculation of financial charges on a credit card. The Financial…
Q: a. A Visa credit card issued through Frost Bank carries an interest rate of 1% per month on the…
A: Effective Annual Rate is a modified rate of return where it considers the compounding effect.…
Q: For the credit card account, assume one month between billing dates (with the appropriate number of…
A: Average daily balance is the
Q: Calculate the finance charge for a credit card that has the given average daily balance and interest…
A: Calculation of Finance Charge:The finance charge is $2.05.Excel Spreadsheet:
Q: 2. Given the following information about a credit card account, determine the average daily balance…
A:
Q: A credit card has a 21.99% APR, a minimum monthly payment of 3.15%, and a current monthly statement…
A: A credit card is a pay later facility provided by the banks to its customers. Banks charge interest…
Q: A credit card account had a balance of P 5 000 on October 12. A purchase of P1500 was made on…
A:
Q: You owe $190 on your credit card. billing cycle is 30 days, and the int What is your interest…
A: Average Daily Balance method Finance charges on your credit card is calculated using average Daily…
Q: A machine shop has a credit card that offers rebates on purchases. A the end of Hay, the company had…
A: The minimum monthly payment is the smallest amount a client may pay on their revolving credit…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: Periodic rate = 14%/12months =1.17%
Q: How can we calculate the total annual interest payment for a credit card debt of $ 1,000?
A: We should pay the credit card bill by the end of credit free period to avoid interest charges upon…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: The term finance charge refers to the cost of borrowed money or the charges that are incurred on the…
Q: Calculate the effective rate per semiannual and annual periods.
A: Effective rate is also called the effective annual rate or the annual equivalent rate. It is the…
Q: A credit card company charges a nominal 12% interest on overdue accounts, compounded daily. What is…
A: The formula for the calculation of effective rate is as follows: Effective interest rate=1+nominal…
Q: the debt is paid off. How long does it take to pay off the credit card debt? ..... out the table row…
A: In this we need to consider the monthly payments and fill the table.
Q: A credit card company determines a card holder's minimum monthly payment by adding all new interest…
A: Total outstanding principal = $592+$429+$120+$104Total outstanding principal = $1245 Total days till…
Q: Assume that you start with a balance of $3900 on your credit card. During the first month you charge…
A: Given, Starting balance is $3900. First month charge is $400. Second month charge is $650 Rate of…
Q: A credit card bill shows a balance due of $2500 with a monthly interest rate of 1.53%. What is the…
A: The formula to calculate effective annual rate is given below:
Q: A particular credit card calculates interest using the unpaid balance method. The monthly interest…
A: Credit card is type of loan facility which is offered by banks and other financial institutions.…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: Given information: Balance amount $3,000 Periodic rate is 17% Payment is $2,500
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: No.of days for a payment to be received and recorded = 10 days Balance = $200 Interest rate = 17%…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: 1. Previous Balance Method = Finance Charge is calculated on the amount which is outstanding at end…
Q: ou owe $1239 on your credit card. Yc nake a minimum payment of $55 eacl month. The rate on the…
A: Credit cards loans are paid by the monthly payment that carry the payment and payment of original…
Q: Use the average daily balance method to compute the finance charge
A: Finance charge is the interest paid for a debt. The Annual Percentage Charge (APR), the amount of…
Q: Use the average daily balance method to compute the finance charge on the credit card account for…
A: Date Details Increase Decrease Balance Aug 1 Balance 320 Aug 8 Payment made 82 238…
Q: David received credit card applications from two different banks. The interest terms from the banks…
A: An effective interest rate is referred to as an interest rate on the loan or the financial product…
Q: On August 10, a credit card account had a balance of $335. A purchase of $52 was made on August 15,…
A: The average daily balance can be calculated by dividing the number of days from the sum amount owed…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: As per previous balance method, the interest is ascertained on the outstanding balance at the end of…
Q: Using the unpaid balance method, find the current month's finance charge on a credit card account…
A: Unpaid Balance Method: It is the method where finance charges are calculated based on previous…
A credit card bill shows a balance due of $1200 with a minimum payment of $24 and a monthly interest rate of 1.44%. What is the EAR?
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- American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
- A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest ExpenseA credit card bill shows a balance due of $2500 with a monthly interest rate of 1.53%. What is the EAR?a credit card charges 2.3% interest per month on the average daily balance if the unpaid balance is 9070 and the average balance is 8800 find the balance due with interest.
- A credit card account’s due date is June 9, and the outstanding balance on that day is $460. On that same day, the card holder sends in a payment of $75 and uses the card for a $20 purchase. The card is used again on June 13th and June 24th for purchases of $154 and $54, respectively. If the credit card interest rate on the average daily balance is 2.5% per month, what is the finance charge for the month? Round your answer to the nearest cent.If a credit card has a 30-day billing period, a 20-day grace period, and charges an interest rate of 20%, compounded daily, how much interest will be charged on a $5000 average monthly balance which gets paid 40 days after the statement due date using the average daily balance method?A credit card has a 21.99% APR, a minimum monthly payment of 3.15%, and a current monthly statement balance of $3,651.21. If there are $791.25 in purchases and a payment of $210.00 in the next month, what will be the next minimum monthly payment?
- A credit card company charges a nominal 12% interest on overdue accounts, compounded daily. What is the effective interest rate?Calculate the finance charge for a credit card that has been given an average daily balance and interest rate average daily balance is $114.73 and the monthly interest rate is 1.95%How much interest will you have to pay for a credit card balance of $875 that is 1 month overdue, if a 17% annual rate is charged?