Here is Justin's credit card statement for the month of June. Date June 1 Beginning balance June 9 Payment June 23 Purchase June 26 Payment Date Transaction (a) Use the credit card statement to help fill in the table below. Note that there are 30 days in June. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. June 1 June 9 Transaction Beginning balance Payment June 23 Purchase Transaction amount $2500.04 $840.00 $46.35 $200.00 June 26 Payment Transaction Unpaid amount balance $2500.04 $2500.04 $840.00 $1660.04 $46.35 $1706.39 $200.00 $1506.39 Number of days at that balance 8 days (from June 1 through June 8) 14 days (from June 9 through June 22) 3 days (from June 23 through June 25) 5 days (from June 26 through June 30) Total: 30 days Unpaid Number balance of days $20,000.32 X $23240.56 $5119.17 $7531.95 Total: $55892.00 S (b) Find the average daily balance. Write your answer to the nearest cent. $1863.06 (c) Suppose credit card company charges an interest rate of 1.4% on the average daily balance for June found in part (b). How much interest will be charged? Write your answer to the nearest cent. $782.49
Here is Justin's credit card statement for the month of June. Date June 1 Beginning balance June 9 Payment June 23 Purchase June 26 Payment Date Transaction (a) Use the credit card statement to help fill in the table below. Note that there are 30 days in June. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. June 1 June 9 Transaction Beginning balance Payment June 23 Purchase Transaction amount $2500.04 $840.00 $46.35 $200.00 June 26 Payment Transaction Unpaid amount balance $2500.04 $2500.04 $840.00 $1660.04 $46.35 $1706.39 $200.00 $1506.39 Number of days at that balance 8 days (from June 1 through June 8) 14 days (from June 9 through June 22) 3 days (from June 23 through June 25) 5 days (from June 26 through June 30) Total: 30 days Unpaid Number balance of days $20,000.32 X $23240.56 $5119.17 $7531.95 Total: $55892.00 S (b) Find the average daily balance. Write your answer to the nearest cent. $1863.06 (c) Suppose credit card company charges an interest rate of 1.4% on the average daily balance for June found in part (b). How much interest will be charged? Write your answer to the nearest cent. $782.49
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
Problem 1PS
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Question
Help with part C please
Transcribed Image Text:Here is Justin's credit card statement for the month of June.
Date
June 1
Beginning balance
June 9
Payment
June 23
Purchase
June 26 Payment
Date
Transaction
(a) Use the credit card statement to help fill in the table below. Note
that there are 30 days in June. Also, a purchase increases the
unpaid balance, and a payment decreases the unpaid balance.
June 1
June 9
Transaction
Beginning
balance
Payment
June 23 Purchase
Transaction
amount
$2500.04
$840.00
$46.35
$200.00
June 26 Payment
amount
Transaction Unpaid
balance
$2500.04 $2500.04
$840.00 $1660.04
$46.35 $1706.39
$200.00 $1506.39
Number of days at that balance
8 days (from June 1 through
June 8)
14 days (from June 9 through
June 22)
3 days (from June 23 through
June 25)
5 days (from June 26 through
June 30)
Total: 30 days
Unpaid Number
balance of days
$20,000.32
$23240.56
$5119.17
$7531.95
Total:
$55892.00
(b) Find the average daily balance. Write your answer to the nearest cent.
$1863.06
(c) Suppose the credit card company charges an interest rate of 1.4% on
the average daily balance for June found in part (b). How much
interest will be charged? Write your answer to the nearest cent.
$782.49
(d) What will Justin's beginning balance be for the month of July (including
the interest for June found in part (c))?
圃
8
Ed
▷
B
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