You have a credit card that charges an interest rate of 17.9% compounded monthly. The table below shows your activity for the month of April. Activity Beginning Balance Purchase Date April 1 April 3 April 13 Payment April 16 Purchase April 25 Purchase April 26 Purchase April 30 Ending Balance Amount 44.50 -250.00 82.75 18.00 38.20 Balance 1,025.00 1,069.50 819.50 902.25 920.25 958.45 958.45 What is the average daily balance for this account? What is the finance charge for the month of April?
You have a credit card that charges an interest rate of 17.9% compounded monthly. The table below shows your activity for the month of April. Activity Beginning Balance Purchase Date April 1 April 3 April 13 Payment April 16 Purchase April 25 Purchase April 26 Purchase April 30 Ending Balance Amount 44.50 -250.00 82.75 18.00 38.20 Balance 1,025.00 1,069.50 819.50 902.25 920.25 958.45 958.45 What is the average daily balance for this account? What is the finance charge for the month of April?
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter4: Managing Your Cash And Savings
Section: Chapter Questions
Problem 5FPE: Calculating the net costs of checking accounts. Determine the annual net cost of these checking...
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Transcribed Image Text:You have a credit card that charges an interest rate of 17.9% compounded monthly. The table below shows
your activity for the month of April.
Date
April 1
April 3
April 13
Payment
April 16
Purchase
April 25
Purchase
April 26 Purchase
April 30 Ending Balance
Activity
Beginning Balance
Purchase
Amount
44.50
-250.00
82.75
18.00
38.20
Balance
1,025.00
1,069.50
819.50
902.25
920.25
958.45
958.45
What is the average daily balance for this account?
What is the finance charge for the month of April?
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