The activity on Toms credit card is given in the table below for the billing cycle of
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Question:
The activity on Tom’s credit card is given in the table below for the billing cycle of October 12 to November 11. The annual rate is 18%. The starting balance was $4,000. Find (a) the average daily balance and (b) the finance charge.
| October 20 | purchase of gas | $55.25 |
| October 31 | purchase at restaurant | $102.60 |
| November 4 | purchase of groceries | $200.05 |
| November 8 | payment on credit card | $3000.00 |
Expert Answer:
To calculate the average daily balance and the finance charge we need to first determine the daily b... View the full answer
Related Book For 
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
