A credit card has an average daily balance of ​$2,833.84 and the monthly periodic rate is 1.337​%. What is the finance charge for the​ month?       The finance charge for the month is?

Q: Suppose your credit card issuer states that it charges a 24.00% nominal annual rate, but you must…

A: Effective Annual Rate(EAR) = [(1+ nominal rate/n)^n]-1 where, n = compounding period

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 monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Formula to calculate the charge using the average daily balance method is: (Balance*10) +…

Q: John Smith has a credit card that charges 11% annual interest on the monthly average daily balance…

A: The credit card companies consider the average balance to determine the amount of interest due on…

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: A particular credit card calculates interest using the unpaid balance method. The monthly interest…

A: Interest is an amount charged for borrowing or lending money. Interest is calculated based on the…

Q: A bank charges 1 ½% per month on the unpaid balance for purchases made with its credit card. This is…

A: The equivalent effective annual rate can be calculated through the compounding interest formula. The…

Q: A local store charges 11/2% each month on the unpaid balance for its charge account. What nominal…

A: Nominal rate is the annual percentage rate for given number of compounding periods. Effective annual…

Q: a credit card charges 2.3% interest per month on the average daily balance if the unpaid balance is…

A: Interest expenses = Average balance * interest rate Balance due with interest = Unpaid Balance +…

Q: John Smith has a credit card that charges 11% annual interest on the monthly average daily balance…

A: It is assumed that no daily compounding while calculating interest amount and average balances.…

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: 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: For the credit card​ account, assume one month between billing dates​ (with the appropriate number…

A: Computation of the average daily balance:Hence, the average daily balance is $352.80.

Q: Find the finance charge for a charge account with an average daily balance of $1213.58 and a monthly…

A: Finance Charge = Average Daily Balance x Monthly Interest rate

Q: A department store charges 1.5% interest per month, compounded continuously, on its customers’…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

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: 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: For the credit card account below, compute the average daily balance, the finance charge, and the…

A: Solution:                                                      Average Daily Balance Date Balance…

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 monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: As per the previous balance method Calculation of finance charges for a billing cycle, uses the…

Q: What is the finance charge, on the average daily balance, for this card over this 1 month period?

A: Finance Charge is the interest charged by credit card companies over an outstanding amount.  Average…

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Given information : Time it takes for payment = 10 days Length of month = 30 days Balance = $475…

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: A particular credit card calculates interest using the unpaid balance method. The monthly interest…

A: Interest is calculated on unpaid balance method. Interest rate = 1.57% on the unpaid balance on the…

Q: 2. Given the following information about a credit card account, determine the average daily balance…

A:

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: A credit card bill shows a balance due of $1200 with a minimum payment of $24 and a monthly interest…

A: Calculate the effective annual rate (EAR) as follows:

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Information Provided: Balance = $600 Rate = 18% Payment = $550 Term = 10/30 days

Q: What is the finance charge for this month?

A: Finance Charge: The finance charge represents the cost of borrowing or the cost of credit. Hence,…

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Average Daily method: in this method for a billing cycle Each day Balance is Divided by the Total…

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Finance charges as per previous  balance  method = previous  balance  × periodic  rate

Q: A firm charges its credit customers 1.67% interest per month. What is the effective interest rate?

A: Effective interest rate is the real return on savings account. It is given as: R = 1+inn-1

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: 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: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Case : As the question provides that the payment receive and record would take time of 10 days .…

Q: The annual interest rate on a credit card is 16.99%. If a payment of $400.00 is made each month, how…

A: Credit Card is short-term debt instrument which allows cardholder to make credit purchases and make…

Q: A local store charges 1½% each month on the unpaid balance for its charge account. What nominal…

A: Interest is an additional amount which is received over the deposited amount. At maturity, depositor…

Q: Suppose you have a revolving credit account at an annual percentage rate of 12%, and your previous…

A: Cash and cash equivalents mean the cash or the assets which can be converted into cash within a very…

Q: A credit card quotes a rate as 21.5% compounded monthly. a) What is the effective annual interest…

A: This question has two parts : In part (a) we need to compute the effective annual interest rate…

Q: For the credit card account below, compute the average daily balance, the finance charge, anc…

A: The credit cards are charged on the basis of average daily balance during the month and finance…

Q: Suppose that the average daily balance on William's American Express Card is $382.2 for a 30-day…

A: Latest Running Balance on the Card is $6941 Average Daily Balance of the Card is $382.2 Billing…

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…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.