Finance charges on credit cards

Consider the following case: On August 1st, Mason's credit card has a balance of $5,626.25. According to the terms of the card's lending agreement, an interest rate of 14% per year is assessed and the monthly finance charges are calculated using the Average Daily Balance (ADB) including purchases method. During the month, Mason expects to make the purchases listed below and will make a payment of $421.97 on August 23th, and has collected the following additional information: Purchases Date Additional Information $245.31 August 06 Monthly interest rate 1.17% August 13 1,940.83 $5,626.25 Beginning card balance August 21 130.41 Days in the month 31 August 26 212.85 Use the following table to help Mason estimate his monthly interest charge for August. Assume the billing cycle is from 8/02 9/01 Use the following table to help Mason estimate his monthly interest charge for August. Assume the billing cycle is from 8/02 9/01 Daily Calculated Number of Days Balance Value Dates 8/ - 8/ 8/ 8/ 8/ 8/ 8/ 8/ - 8/ -8/ 8/ - 9/ Total Average Daily Balance With Purchases Finance Charge One way by which Mason can increase his finance charges, everything else remaining constant, is to Buy a larger number of more expensive items using your card Make fewer, less expensive purchases O Make larger or more frequent payments Consider the following case: On August 1st, Mason's credit card has a balance of $5,626.25. According to the terms of the card's lending agreement, an interest rate of 14% per year is assessed and the monthly finance charges are calculated using the Average Daily Balance (ADB) including purchases method. During the month, Mason expects to make the purchases listed below and will make a payment of $421.97 on August 23th, and has collected the following additional information: Purchases Date Additional Information $245.31 August 06 Monthly interest rate 1.17% August 13 1,940.83 $5,626.25 Beginning card balance August 21 130.41 Days in the month 31 August 26 212.85 Use the following table to help Mason estimate his monthly interest charge for August. Assume the billing cycle is from 8/02 9/01 Use the following table to help Mason estimate his monthly interest charge for August. Assume the billing cycle is from 8/02 9/01 Daily Calculated Number of Days Balance Value Dates 8/ - 8/ 8/ 8/ 8/ 8/ 8/ 8/ - 8/ -8/ 8/ - 9/ Total Average Daily Balance With Purchases Finance Charge One way by which Mason can increase his finance charges, everything else remaining constant, is to Buy a larger number of more expensive items using your card Make fewer, less expensive purchases O Make larger or more frequent payments