Here is Dan's credit card statement for the month of March. Transaction Date Transaction amount March 1 Beginning balance $2640.80 March 6 Purchase $400.50 March 8 Payment $628.00 E March 18 Purchase $630.51 C (a) Use the credit card statement to help fill in the table below. Note that there are 31 days in March. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. E Date Transaction Transaction amount Unpaid balance Number of days at that balance Unpaid Number balance of days E $13,204.00 March 1 Beginning balance $2640.80 $2640.80 5 days (from March 1 through March 5) March 6 G Purchase $400.50 $3041.30 $ March 8 Payment $628.00 $ days (from March 6 through March 7) $10 days (from March 8 through March 17) $ 14 days (from March 18 through March 31) Total: 31 days March 18 Purchase $630.51 $ Total: $ (b) Find the average daily balance. Write your answer to the nearest cent. $ (c) Suppose the credit card company charges an interest rate of 1.4% on the average daily balance for March found in part (b). How much interest will be charged? Write your answer to the nearest cent. $ (d) What will Dan's beginning balance be for the month of April (including the interest for March found in part (c))? $0 ?
Here is Dan's credit card statement for the month of March. Transaction Date Transaction amount March 1 Beginning balance $2640.80 March 6 Purchase $400.50 March 8 Payment $628.00 E March 18 Purchase $630.51 C (a) Use the credit card statement to help fill in the table below. Note that there are 31 days in March. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. E Date Transaction Transaction amount Unpaid balance Number of days at that balance Unpaid Number balance of days E $13,204.00 March 1 Beginning balance $2640.80 $2640.80 5 days (from March 1 through March 5) March 6 G Purchase $400.50 $3041.30 $ March 8 Payment $628.00 $ days (from March 6 through March 7) $10 days (from March 8 through March 17) $ 14 days (from March 18 through March 31) Total: 31 days March 18 Purchase $630.51 $ Total: $ (b) Find the average daily balance. Write your answer to the nearest cent. $ (c) Suppose the credit card company charges an interest rate of 1.4% on the average daily balance for March found in part (b). How much interest will be charged? Write your answer to the nearest cent. $ (d) What will Dan's beginning balance be for the month of April (including the interest for March found in part (c))? $0 ?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
Section: Chapter Questions
Problem 8P: Monitoring of Receivables
The Russ Fogler Company, a small manufacturer of cordless telephones,...
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Here is Dan's credit card statement for the month of March.
Date
Transaction
Transaction
amount
March 1
Beginning balance
$2640.80
March 6
Purchase
$400.50
March 8
Payment
$628.00
March 18 Purchase
$630.51
D
(a) Use the credit card statement to help fill in the table below. Note that there are 31 days in March. Also, a purchase increases the unpaid balance, and a
payment decreases the unpaid balance.
Transaction
Transaction
amount
Date
March 1
Unpaid
Number of days at that balance
balance
$2640.80 5 days (from March 1 through March 5)
Unpaid Number
balance of days
Beginning balance
$2640.80
$13,204.00
March 6
Purchase
$400.50 $3041.30
days (from March 6 through March 7)
$
March 8
Payment
$628.00
S
$
March 18 Purchase
$630.51
10 days (from March 8 through March 17)
$14 days (from March 18 through March 31)
Total: 31 days
$
Total: $
X
(b) Find the average daily balance. Write your answer to the nearest cent.
$0
(c) Suppose the credit card company charges an interest rate of 1.4% on the average daily balance for March
found in part (b). How much interest will be charged? Write your answer to the nearest cent.
$
(d) What will Dan's beginning balance be for the month of April (including the interest for March found in part (c))?
$0
?
in
DH
0
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