You have a credit card that charges an interest rate of 9.5% compounded monthly. The table below shows your activity for the month of April. Date April 1 April 3 April 14 Payment April 16 Purchase April 18 Purchase April 30 Purchase April 30 Ending Balance $ Activity Beginning Balance Purchase $ Amount What is the average daily balance for this account? 42.80 -300.00 87.00 18.00 62.60 How much interest is owed this month? $ Balance 700.00 742.80 442.80 529.80 547.80 610.40 610.40 How much total money is owed at the end of the month?

You have a credit card that charges an interest rate of 9.5% compounded monthly. The table below shows your activity for the month of April. Date April 1 April 3 April 14 Payment April 16 Purchase April 18 Purchase April 30 Purchase April 30 Ending Balance $ Activity Beginning Balance Purchase $ Amount What is the average daily balance for this account? 42.80 -300.00 87.00 18.00 62.60 How much interest is owed this month? $ Balance 700.00 742.80 442.80 529.80 547.80 610.40 610.40 How much total money is owed at the end of the month?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 21E

See similar textbooks

Similar questions

A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
Ancient Grains Unlimited has an accounts receivable turnover ratio of 3.34 times. The net credit sales for the year are $567,920. What is the days sales in receivables ratio for 2018 (rounded to the nearest whole number)? A. 190 days B. 109 days C. 110 days D. 101 days
Suppose your MasterCard calculates interest using the average daily balance method, and the monthly interest rate is 1.9%. The itemized billing for the month of August is shown below The average daily balance has already been computed and is $2739.52. (a) Find the interest due for this month. $ (b) Find the total balance owed on the last day of the billing period. $ (c) This credit card requires a $15 minimum payment or 1/24 of the amount due, whichever is higher. What is the minimum monthly payment due for this month? $
You have a credit card that charges an interest rate of 15.8% compounded monthly. The table below shows your activity for the month of April. Date Activity Amount Balance April 1 Beginning Balance 975.00 April 6 Purchase 46.10 1,021.10 April 13 Payment −250.00 771.10 April 16 Purchase 81.50 852.60 April 22 Purchase 12.00 864.60 April 26 Purchase 30.20 894.80 April 30 Ending Balance 894.80 What is the average daily balance for this account?$What is the finance charge for the month of April?
Suppose we have a credit card company that sets the due date every 1st month. If its annual interest rate is 24%, what will be the finance charge (interest) and outstanding balance on Dec 01? The ADB in this credit card for the November billing period is PhP 14,422.07. So the finance charge for this billing period would be: Monthly Interest = ADB x Monthly Rate = 14,422.07 (0.02) = 288.44 So the outstanding balance (OS) for the next billing period is OS = Last Daily Balance + Finance Charge = 1,607.80 + 288.44 = 1,896.24 important question: On the same credit card, for December, the customer plansto purchase on Dec 05 an item worth PHP 15,000 and make periodicpayments of PhP 4,000 every Monday thereafter. What will be the O/SBalance on January 01, 2021?
Suppose you invest $1,000.00 in an account with an annual interest rate of 6% compounded monthly (6%÷÷12 = 0.5% each month). At the end of each month, you deposit $275.00 into the account.Use this information to complete the table below. Round to the nearest cent in each step as needed. Month Prior Balance 0.5% Intereston Prior Balance Monthly Deposit Ending Balance 0 $1,000.00 1 $1,000.00 $275.00 2 $275.00 $1,561.40 3 $1,561.40 $275.00 4 $9.22 $275.00
Assume you have a balance of $1000 on a credit card with an APR of 24%, or 2% per month. You start making monthly payments of $200, but at the same time you charge an additional $90 per month to the credit card. Assume that interest for a given month is based on the balance for the previous month. The following table shows how you can calculate your monthly balance. Complete and extend t the debt is paid off. How long does it take to pay off the credit card debt?
A commercial bank offers you a credit card with an annual percentage rate APR = 9%, compounding monthly. What’s the credit card’s nominal annual rate?
Use the average daily balance method to compute the finance charge on the credit card account for the previous month. The starting balance and transactions for the month of april are given. Assume an annual interest rate of 15%. April-30 days (prvious months balance $430) 4/7- charged $80 4/17- made payment of 160 4/23-charged $194 4/27- charged $16 What is the finance charge?
The bank states they will charge you annual interest of 20% APR and interest is calculated (compounded) daily. Assume 365 days in a year. A) What is the daily interest charge? 20%/365? .055% B) What is the effective annual interest rate? (1+(20%/365))^365-1? 22.23% C) What is the simple interest over 2 years? And what is the effective interest over 2 years? Simple interest- 20%x2= 40% Effective interest- (1+(20%/365))^720-1= 48.35% Did I go about these correctly?
The balance of my Target credit card is $854.56 with an APR of 28%. What are my finance charges for the month of April?
Which of the following bank accounts has the highest effective annual return? An account that pays 8% nominal interest with daily (365-day) compounding. An account that pays 8% nominal interest with monthly compounding. An account that pays 8% nominal interest with annual compounding. An account that pays 7% nominal interest with daily (365-day) compounding. An account that pays 7% nominal interest with monthly compounding.