Michael’s credit card statement shows a balance due of $878.25 on March 23, the billing date. For the period ending on April 23, he had the following transactions.

(a) Determine the finance charge on March 23 by using the previous balance method. Assume that the interest rate is 1.4% per month.

(b) Determine the new account balance on April 23 using the finance charge found in part (a).

(c) Determine the average daily balance for the period.

(d) Determine the finance charge on April 23 by using the average daily balance method. Assume that the inter-est rate is 1.4% per month.

(e) Determine the new account balance on April 23 using the finance charge found in part (d).

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Charge: Groceries Charge: Restaurant bill Payment March 26 $95.89 68.76 March 30 450.00 April 3 April 15 Charge: Clothing 90.52 Charge: Eyeglasses 450.85 April 22