On June 1, the billing date, Tim had a balance due of $485.75 on his credit card.

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On June 1, the billing date, Tim had a balance due of $485.75 on his credit card. Tim’s transactions during the month of June were

$375.00 June 4 Payment Charge: Car repair Charge: Airline ticket June 8 June 21 June 28 370.00 175.80 Charge: Clothing 1

(a) Determine the finance charge on July 1 by using the previous balance method. Assume that the interest rate is 1.3% per month.

(b) Determine the new account balance on July 1 using the finance charge found in part (a).

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

(d) Determine the finance charge on July 1 by using the average daily balance method. Assume that the interest rate is 1.3% per month.

(e) Determine the new account balance on July 1 using the finance charge found in part (d). 

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Related Book For  book-img-for-question

A Survey of Mathematics with Applications

ISBN: 978-0134112107

10th edition

Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde

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