On the July 5 billing date, David had a credit card balance due of $589.85.  The transactions during the following month were: July 6   Payment   $270.06 July 19   Charge: auto repair   $322.00 August 1   Charge: clothing   $122.02   The interest rate on the card is 14.4% per year.  Using the average daily balance method, find the finance charge on August 5 (July has 31 days.). Select one:   a.$9.02   b.$6.37   c.$9.49   d.$9.37

Q: On May 1, the billing date, Kayla had a balance due of $673.64 on her credit card. In May, Kayla…

A: Determine the finance charge on June 1 by previous balance method: By this method, we need to…

Q: A credit card has a monthly rate of 2.20% and uses the average daily balance method for calculatin…

A: Given that: Credit card monthly rate = 2.20% Unpaid balance = $418.44 Payment received = $180…

Q: For the credit card account, assume one month between billing dates and interest of 1.6% per month…

A: Here, Interest Rate is 1.6% per month on average daily balance

Q: The balance on Ramon Felipe's credit card on January 18, his billing date, was $249.35. For the…

A: Credit Card is short term debt instrument which allows holder of such card to make purchases on…

Q: A credit card account had a $233 balance on March 5. A purchase of $107 was made on March 12, and a…

A: The computation of average daily balance: Hence, total billing period is 30 days, and the total…

Q: The following table show's a credit cardholder's transactions for his credit card with statement…

A: (a) Carry-Over Balance = Total amount due in previous statement - Payment…

Q: (our credit card statement for the month of June (30 days) has the following information. Your…

A: As per company policy it is only possible to solve three sub parts.

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: A credit card had a previous balance of P 9 500 on June 10. A purchase of P 5 000 was made on June…

A: Credit card balance is the net amount owed by the borrower at the end of given month. The balance…

Q: On February 3, the billing date, Carol Ann Bluesky had a balance due of $128.66 on her credit card.…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: In John​ Balfour's credit card account interest is charged on the average daily balance. The cycle…

A: The finance charge is the amount charged by using some fixed percentage on the borrowed amount by…

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

A: Solution:                                                      Average Daily Balance Date Balance…

Q: Use average daily balance method to compute the charge on the credit card account for the previous…

A: Computation:

Q: Use the unpaid balance method to find the finance charge on the credit card account for August. The…

A: Finance charge It is basically the interest charge on the unpaid balance. With unpaid balance (P),…

Q: Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous…

A: Revolving Credit Account is a short-term finance facility offered to individual customers by…

Q: credit card bill for $559 was due on September 14. Purchases of $289 were made on September 19, and…

A: Given:   Opening balance as on Sept-14  $ 559.00 Purchases on Sept-19  $ 289.00 Charges in…

Q: Use the unpaid balance method to find the finance charge on the credit card account for August. The…

A: Unpaid Balance method : It is a method of calculating of finance charge . in this method we…

Q: On August 10, a credit card account had a balance of $320. A purchase of $51 was made on August 15,…

A: Here, Credit Card Balance is $320 Purchase on Aug 15 is $51 Payment on Aug 15 is $78 Charged on Aug…

Q: Use the average daily balance method to compute the finance charge on the credit card account for…

A: Average-Daily-Balance shows an estimate amount that is due or held in an account on daily basis. It…

Q: The balance on Ramon Felipe's credit card on January 19, his billing date, was $281.38. For the…

A: Credit cards are a type of short-term financial instrument that allows the cardholder to make…

Q: The activity on Marny Zell's MasterCard account for one billing period is shown below. Find the…

A: Finance charge is a fee for cost of credit.

Q: You have a credit card that charges an interest rate of 9.5% compounded monthly. The table below…

A: Average Daily balance method is the method in which interest charges for the period are calculated…

Q: Use the unpaid balance method to find the finance charge on the credit card account for November…

A: Finance Charge = Closing balance for the month x Monthly Interest Rate

Q: A credit card account had a $230 balance on March 5. A purchase of $150 was made on March 12, and a…

A: Hence, total billing period is 30 days, and the total balance of unpaid amount in each day of the…

Q: 5. On November 10, a customer's credit card had a balance of P12,300. Purchases of P2,450 and P5,600…

A: The finance charge on the credit card is the interest charges for the usage of the credit card.

Q: On October 22, you plan to purchase a $1,800 computer by using one of your two credit cards. The…

A: In average daily balance method, average balance of each day of the month is taken and on that…

Q: Use the average daily balance method to compute the finance charge on the credit card account for…

A: To find the finance charge for the month, we have to find the average daily balance. After that, we…

Q: The following table show's a credit cardholder's transactions for his credit card with statement…

A: The credit card holder's transactions for his credit card are given to us. The statement is upto…

Q: On august 10, a credit card account had a balance of $345. A purchase of $64 was made on august 15,…

A: Finance charge means the interest which a borrower is required to pay on the outstanding credit. The…

Q: aoul's credit card statement showed these transactions during May. May 1 May 6 May 10 May 15 May 26…

A: In credit cards bank charges interest based on daily balance during month and interest is charged…

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

A: The following are the formulas used to calculate the answer;- 1. Average Daily Balance = ∑Daily…

Q: On October 23, you plan to purchase a $1,800 computer by using one of your two credit cards. The…

A: The cost of purchase is $1800 on October 23. It can be done using one of the two credit cards a)…

Q: Transactions on Devin's credit card are shown for the month of May. The interest rate is 2.4% per…

A: Introduction: A credit card is a financial tool or instrument that is being used by account holders…

Q: A credit card account had a $243 balance on March 5. A purchase of $179 was made on March 12, and a…

A: From March 5 to March 12, the balance of account is $243 for 7 days.From March 12 to March 28, the…

Q: Use the average daily balance method to compute the finance charge on the credit card account for…

A: Finance charge refers to the type of cost used to incur through the borrowing of the funds. It…

Q: ​a) Find the average daily balance for the billing period. ​b) Find the finance charge to be paid on…

A: The average amount on which interest is charged is known as average daily balance. Higher is the…

Q: Use the average daily balance method to compute the finance charge on the credit card account for…

A: Average daily balance is calculated by weighted average of balance with number of days as weigh of…

Q: On the January 25 billing date, Vivian had a balance due of $387.19 on her credit card. The…

A: As per the given information: January 25 Balance due - $387.19 January 26 Charge: Curtains - $386…

Q: Use the average daily balance method to compute the finance charge on the credit card account for…

A: Computation:

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: On October 25, you plan to purchase a $1,800 computer by using one of your two credit cards. The…

A: Solution- a) For silver card: Interest on 10th November month=balance on 1st oct*18%=0*18%=0,…

Q: On October 24, you plan to purchase a $1,800 computer by using one of your two credit cards. The…

A: Here, Interest Rate of Silver Card is 18% and interest is calculated based on the balance on the…

Q: Suppose your MasterCard calculates interest using the average daily balance method, and the monthly…

A: Date Opening balance Debit Credit Closing balance Aug 1 395 - - 395 2 395 - - 395 3 395 - -…

Q: On the April 4 billing date, Michaelle Chappell had a balance due of $1281.46 on her credit card.…

A: In previous due method, the interest charges are calculated on the previous month balance due.

Credit card

A credit card is provided by financial institutions or banks, which permits a person to borrow money on a preapproved limit for purchases on a credit basis. The credit limit is decided by the institution and bank which issues a credit card depending on the person’s credit score and income. A cardholder can use the card for credit purchases, a balance transfer, cash advances.