Average → I If the finance charge is 1.75% of the average daily balance, what is the finance charge is problem 2.19? Finance charge →

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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2.19) Find the average daily balance (new purchases included)
Payment
End of Day
Balance
Dates
1/1-1/19
1/20
1/21-1/22
1/23
1/24-1/31
$250.00
Average →
Purchase
$50.00
X Number of
Days
$225.00 x
$275.00 x
$275.00 x
$25.00 x
$25.00 x
Total →
19
1
2
1
8
31
Sum of
Balances
I
If the finance charge is 1.75% of the average daily balance, what is the finance charge is problem 2.19?
Finance charge →
Transcribed Image Text:2.19) Find the average daily balance (new purchases included) Payment End of Day Balance Dates 1/1-1/19 1/20 1/21-1/22 1/23 1/24-1/31 $250.00 Average → Purchase $50.00 X Number of Days $225.00 x $275.00 x $275.00 x $25.00 x $25.00 x Total → 19 1 2 1 8 31 Sum of Balances I If the finance charge is 1.75% of the average daily balance, what is the finance charge is problem 2.19? Finance charge →
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