Credit card bills Assume you open a credit card at the beginning of the year January 1 with an open in balance of zero the annual interest rate on the card is 18% and your bill is due each month starting in January the following charges and credits occur on your account

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Credit card bills

Assume you open a credit card at the beginning of the year January 1 with an open in balance of zero the annual interest rate on the card is 18% and your bill is due each month starting in January the following charges and credits occur on your account : 

 

Jan 5 -$ 45 gas charge

 Jan 9 - $115 clothes charge

 Jan 13 - groceries charge  $85

 Jan 14 - clothes CREDIT (return) $65

Jan 18 - lunch charge $11

 Jan 25-$32 gas charge 

Jan 27- $127 boots charge

 Jan 29- $200 payment or credit

 feb 2- $38 gas charge

 feb 6- $58 groceries charge

 feb 9- $199 car insurance charge

 feb 14- $75 credit or payment

 feb 17- $28 gas charge

 feb 22 - $6 lunch charge

 feb 23- $35 dinner and movie charge

 feb 26- $78 groceries charge

 feb 28- $150 payment or credit

 

Compare what your finance charge will be for the month of March using the average daily balance method in the unpaid balance method assume the year is not a leap year also assume the only things you charged and paid our listed above

 

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