If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 12% APR and the following transactions? 28-day billing cycle 1-October Previous balance $ 1,168 3-October Credit $ 75.00 12-October Charge: King Soopers $ 152.00 15-October Payment $ 350.00 25-October Charge: Delta $ 325.00 30-October Charge: Holiday Fun $ 65.00 APR 12% Required: Using the information above, complete the following table and questions Number of days of current balance Current balance Extension 2 $ 1,168.00 9 3 10 5 2 What is the total extension amount? What is the average daily balance? What is the total number of days of current balance? What is her periodic rate? What is her total finance charge? What is the total owed?
If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 12% APR and the following transactions? 28-day billing cycle 1-October Previous balance $ 1,168 3-October Credit $ 75.00 12-October Charge: King Soopers $ 152.00 15-October Payment $ 350.00 25-October Charge: Delta $ 325.00 30-October Charge: Holiday Fun $ 65.00 APR 12% Required: Using the information above, complete the following table and questions Number of days of current balance Current balance Extension 2 $ 1,168.00 9 3 10 5 2 What is the total extension amount? What is the average daily balance? What is the total number of days of current balance? What is her periodic rate? What is her total finance charge? What is the total owed?
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
Chapter6: Using Credit
Section: Chapter Questions
Problem 8FPE
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If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 12% APR and the following transactions?
| 28-day billing cycle | ||
| 1-October | Previous balance | $ 1,168 |
|---|---|---|
| 3-October | Credit | $ 75.00 |
| 12-October | Charge: King Soopers | $ 152.00 |
| 15-October | Payment | $ 350.00 |
| 25-October | Charge: Delta | $ 325.00 |
| 30-October | Charge: Holiday Fun | $ 65.00 |
APR 12%
Required:
Using the information above, complete the following table and questions
| Number of days of current balance | Current balance | Extension |
|---|---|---|
| 2 | $ 1,168.00 | |
| 9 | ||
| 3 | ||
| 10 | ||
| 5 | ||
| 2 |
- What is the total extension amount?
- What is the average daily balance?
- What is the total number of days of current balance?
- What is her periodic rate?
- What is her total finance charge?
- What is the total owed?
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