Your credit card lender charges an annual rate of 13 percent on the average daily balance. Your balance on March 10, the end of the last billing cycle, was $4000. The following transactions were posted to your account during the billing cycle:

3/15	New credit purchase	$600
3/20	Payment received	$900
4/1	New credit purchase	$1050

The last day of the monthly billing cycle is April 10. Calculate the finance charge.

You have just received a credit card solicitation in the mail that offers you a 4 percent APR. Your current card has an APR of 18 percent. How much interest will you save the first month by switching cards, assuming you make no additional charges and both cards calculate interest based on the average daily balance of $3400?

The total annual finance charges on your credit card account are $405. You also pay an annual fee of $75. If your average outstanding balance during the year is $2400, what is the annual percentage rate?

Answer rating: 100% (QA)

To calculate the finance charge for the billing cycle we need to determine the average daily balance ... View the full answer