You have a credit card that charges an interest rate of 15.8% compounded monthly. The table below shows your activity for the month of April.DateActivity Amount Balance April 1Beginning Balance 975.00April 6Purchase46.101,021.10April 13Payment−250.00771.10April 16Purchase81.50852.60April 22Purchase12.00864.60April 26Purchase30.20894.80April 30Ending Balance 894.80What is the average daily balance for this account?$What is the finance charge for the month of April?

Average daily balance refers to the sum average of days and the amount in the credit card account.

Answered: You have a credit card that charges an…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 5FPE: Calculating the net costs of checking accounts. Determine the annual net cost of these checking...

See similar textbooks

Related questions

Concept explainers

Question

You have a credit card that charges an interest rate of 15.8% compounded monthly. The table below shows your activity for the month of April.

Date	Activity	Amount	Balance
April 1	Beginning Balance		975.00
April 6	Purchase	46.10	1,021.10
April 13	Payment	−250.00	771.10
April 16	Purchase	81.50	852.60
April 22	Purchase	12.00	864.60
April 26	Purchase	30.20	894.80
April 30	Ending Balance		894.80

What is the average daily balance for this account?

$

What is the finance charge for the month of April?

Expert Solution

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions