The credit card with the transactions described in the popup below uses the average daily balance method to calculate interest. The monthly interest rate is 1.2% of the average daily balance. Calculate parts a-d using the statement below. transaction description transaction amount Previous balance, $2654.19 June 1 Billing date June 6 Payment $1100.00 credit June 8 Charge: gas $35.41 June 9 Charge: groceries $138.42 June 17 charge: gas $41.68 charge: groceries $127.27 June 27 charge: clothing $215.41 June 30 end of billing period Payment due date: July 9 A) Find the average daily balance for the billing period. Round to the nearest cent. B) Find the interest to be paid on July 1, the next billing date. Round to the nearest cent. (Use the answer from part a to find this answer. Round to the nearest cent as needed.) C) Find the balance due on July 1. (Use the answer from part b to find this answer.) D) This credit card requires a $30 minimum monthly payment if the balance due at the end of the billing period is less than $400. Otherwise, the minimum monthly payment is 1/25 of the balance due at the end of the billing period, rounded up to the nearest whole dollar. What is the minimum monthly payment due by July 9? (Use the answer from part c to find this answer. Round up to the nearest dollar.)

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter18: Acquiring Capital For Growth And Development

Section: Chapter Questions

Problem 2AP

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The credit card with the transactions described in the popup below uses the average daily balance method to calculate interest. The monthly interest rate is 1.2% of the average daily balance. Calculate parts a-d using the statement below.

transaction description	transaction amount
Previous balance, $2654.19
June 1 Billing date
June 6 Payment	$1100.00 credit
June 8 Charge: gas	$35.41
June 9 Charge: groceries	$138.42
June 17 charge: gas	$41.68
charge: groceries	$127.27
June 27 charge: clothing	$215.41
June 30 end of billing period
Payment due date: July 9

A) Find the average daily balance for the billing period. Round to the nearest cent.

B) Find the interest to be paid on July 1, the next billing date. Round to the nearest cent. (Use the answer from part a to find this answer. Round to the nearest cent as needed.)

C) Find the balance due on July 1.

(Use the answer from part b to find this answer.)

D) This credit card requires a $30 minimum monthly payment if the balance due at the end of the billing period is less than $400. Otherwise, the minimum monthly payment is 1/25 of the balance due at the end of the billing period, rounded up to the nearest whole dollar. What is the minimum monthly payment due by July 9?

(Use the answer from part c to find this answer. Round up to the nearest dollar.)

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