Question: Kayla Sampson, an antiques dealer from Mankato, Minnesota, received her monthly billing statement for April for her MasterCard account. The statement indicated that she had

Kayla Sampson, an antiques from Mankato, Minnesota, received her monthly billing statement for April for her MasterCard account. The statement indicated that she had a beginning balance of $600, on day 5 she charged $150, on day 12 she charged $300, and on day 15 she made a $200 payment. Out of curiosity, Kayla wanted to confirm that the finance charge for the billing cycle was correct.
(a) What was Kayla's average daily balance for April without new purchases?
(b) What was her finance charge on the balance in part (a) if her APR is 19.2 percent?
(c) What was her average daily balance for April with new purchases?
(d) What was her finance charge on the balance in part (c) if her APR is 19.2 percent?

Step by Step Solution

★★★★★

3.33 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Ignoring new purchases Kaylas balance was 600 for 14 days and 400 for 16 days giving an av... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1226-B-C-F-S(1110).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

1. Zachary Porter of Highland Heights, Kentucky, is contemplating borrowing $10,000 from his bank. The bank could use add-on rates of 6.5 percent for 3 years, 7 percent for 4 years, and 8 percent for...

The taxpayer is an antiques collector and is going to sell an antique purchased many years ago for a large gain. The facts and circumstances indicate that the taxpayer might be classified as a dealer...

Masters, an antique dealer, promised Shatraw, an international dealer in rare antiques, that if Shatraw could obtain some rare vases from India within three weeks, he would pay Shatraws airfare to...

Average Daily Balance and Finance Charges Kayla Sampson, an antiques dealer from Mankato, Minnesota, received her monthly billing statement for April for her MasterCard account. The statement...

Do the Math 7 - 3 Average Daily Balance and Finance Charges Kayla Sampson, an antiques dealer from Mankato, Minnesota, received her monthly billing statement for April for her MasterCard account. The...

Average Daily Balance and Finance Charges Kayla Sampson, an antiques dealer from Mankato, Minnesota, received her monthly billing statement for April for her MasterCard account. The statement...

3. Average Daily Balance and Finance Charges. Kayla Sampson, an antiques dealer from Mankato, Minnesota, received her monthly billing statement for April for her MasterCard account. The statement...

eBook Do the Math 7-3 Average Daily Balance and Finance Charges Kayla Sampson, an antiques dealer from Mankato, Minnesota, received her monthly billing statement for April for her MasterCard account....

I am really having problems with a Average Daily Balance. Can someone please try and help me. This is for a Personal Finance class \f2. Monthly Payments and Finance Charges: Kimberly Jensen of Storm...

3. Average Daily Balance and Finance Charges. Kayla Sampson, an antiques dealer from Mankato, Minnesota, received her monthly billing statement for April for her MasterCard account. The statement...

Atmospheric air of 40% relative humidity and temperature T = 300 K is in parallel flow over a series of water-filled trays, with U = 12 m/s. What is the rate at which energy must be supplied to ach...

Jen sold 15 | 200 ml of pineapple juice in 2 days of a week and 24 | 500 in 3 days. How much juice is she able to sell in 5 days?

It is sometimes implemented firmwide as net operating profit after taxes ( capital cost of capital ) .

What is the most costly method of price support to the taxpayer? Demonstrate graphically. (LO8W-2)

(a) What areas might be cut back? (b) How much in each area might be cut back? (c) After finishing your analysis, what advice (and possibly alternatives) would you offer Courtney about buying the new...

Melinda Dennis from Troy, New York, just graduated from college and is concerned about her student loan debts. While at her graduation party she got to talking with three of her cousins, Kyle,...

(a) What is consumer credit? (b) Why might graduates use credit? (c) How can graduates use credit wisely? Jacob Marchese of Auburn, Alabama, is the credit manager for a regional chain of department...

You have the following data on Bravo, plc for the year 2018: Income Statement for the year to 31/12/2018 '000 Revenue (all credit sales) 1,850 Cost of Sales (Purchases) (1,350) Gross Profit 500...

Discuss and give a detailed explanation about the company's cash flow from 2019 to 2021. 12 months ended: Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Consolidated net income 13,706 15,201 7,179...

e question will save this response Question 1 of 27 Question 1 2 points Suppose you invest in a municipal bond that pays a yield of 5%. If your marginal tax is 23%, what is the equivalent yield on...