On March 3, the balance on a credit card was $4, 173.14. A payment of $420 was made on March 12, and a charge of 883.54 was made on March 20 . If the finance charg based on a 1.5% interest rate, calculate the average dally balance on April 3 .

On March 3, the balance on a credit card was $4, 173.14. A payment of $420 was made on March 12, and a charge of 883.54 was made on March 20 . If the finance charg based on a 1.5% interest rate, calculate the average dally balance on April 3 .

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

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