On November 1st, Ben owes $800 on his credit card. On November 5th, Ben pays $60 towards the balance of the card. On November 12th, Ben makes $90 in purchases. On November 22nd, Ben pays $150 towards the balance of the card. The average daily balance of the card for the month of November is

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Discount on notes = Notes payable x discount rate x no. of days/360 =$18,000*10%*90/360 = $450

Q: Shiing Shen Chern's credit card company determines his minimum monthly payment by adding all new…

A: Credit Card: A credit card is a short-term bank loan, on which the borrower has to pay interest,…

Q: Martin makes a deposit and has these bills: 18 ones, 3 fives, 12 tens, and 6 twenties. He also has…

A: Net Deposit = Total Cash + Total Checks - Cash to be received

Q: Last month, Kaitlin's average daily balance on her credit card was $1,253.38. The annual interest…

A: Given: Average daily balance on credit card "B"= $1253.38 Annual interest rate "r"=15.27% Number of…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Interest on note = Notes payable x interest payable x no. of days/365 = 34,560*10%*45/360 = $432

Q: a) Assuming Shing had no new interest, determine Shing's minimum payment due on April 1, his billing…

A: The minimum payment that Shing has to make is the 1% of the outstanding principal and interest on…

Q: The due date on Gabrielle's credit card is the 8th day of each month. Gabrielle's unpaid credit card…

A: Balance on July 8th is $2,750 Additional Charges during month is $320 Payment during month is $400…

Q: On May 12, Scott Rinse accepted an $9,500, 11%, 90-day note for a time extension of a bill for goods…

A: A note can be defined as money lent by the issuer to the borrower. The note is a type of loan…

Q: Many consumers carry a balance each month on their credit cards and make minimal payments towards…

A: Monthly payment (M) = $251.22 Interest rate = 23.77% compounded daily n = 6 years = 72 payments

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: 2, Scott Rinse accepted an $4,500, 11%, 90-day note for a time extension of a bill for goods bought…

A: The notes are given interest rate and based on time period and interest the value of the note is…

Q: Dave borrowed $1,300 on January 1, 2022. The bank charged him a $5.00 service charge, and interest…

A: When a borrower takes out a loan from a lender, they are required to pay interest on the borrowed…

Q: On August 1, Rachael Westlake joined a Christmas Club. Her bank will automatically deduct $120 from…

A: The present value of the given annuity: The present value of the annuity due in the future is the…

Q: Shiing Shen​ Chern's credit card company determines his minimum monthly payment by adding all new…

A: Interest rate = 1% Purchase from credit card = $3,600Outstanding balance at month end = $3,600

Q: On May 8, Manuel borrowed $780.00 from his uncle at 4.6% per annum calculated on the daily balance.…

A: Balance before Payment Amount paid Interest paid Principal repaid Balance After Payment…

Q: John Smith has a credit card that charges 15% annual interest on the monthly average daily balance…

A: Average Daily BalanceThe average daily balance is one of the methods used by credit companies to…

Q: Jack Lowes $358.32 on his Visa account. He returns two items costing $23.13 and $32.77 for credit.…

A: Total amount to be paid off shall be: = Opening Balance + Purchases - Returns Further, the said…

Q: 5) Jon has a credit limit of $15,000 on his credit card. He had a previous balance of $427.51. He…

A: Credit cards are widely accepted and provide a convenient way to make purchases without carrying…

Q: $9,000.00 and $12,000.00 on April 6 and June 21. The interest rate on her HELOC sits at prime plus…

A:

Q: On March 15th Ron went to the bank to borrow $3,000 at 8.5% interest. Ron plans to repay the loan…

A: Ordinary interest is an interest that is computed on the basis of a 360-day year instead of a…

Q: Joaquin deposits $400 at the end of each month into his bank account. The bank account pays 13.2%…

A: The difference between the future value and present value of money refers to the concept of the time…

Q: On May 12, Scott Rinse accepted an $6,000, 14%, 90-day note for a time extension of a bill for goods…

A: Calculation of Discounted Period Between May 12 and June 12, 31 days passed i.e. 90-31 days = 59…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: The journal entries are prepared to record daily transactions of the business.

Q: Rebecca carries a balance on her credit card each month. Today is the first day of the new. 28-day…

A: A credit card is a financial service offered by banks and other financial institutions to their…

Q: find his balance as of April 30.

A: Balance at bank at any point means at particular date is determined after taking various things into…

Q: Mr. Smith did not pay his full credit card balance on June 5th, the due date each month for payment.…

A: Interest charge refers to an amount that is being charged on the balance amount over the period that…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Interest on notes = face value of notes x rate of interest x no. Of days/360 = 37440*8%*30/360 =…

Q: Use Worksheet 7.1. Every 6 months, Sean Ma takes an inventory of the consumer debts that he has…

A: A personal line of credit (LOC), which functions similarly to a credit card but without the actual…

Q: On August 19, Siobhan O’Sullivan started an ordinary annuity. She arranged to have $150 deducted…

A: Annuity refers to the fixed periodic payments which are paid monthly, quarterly, semi-annually or…

Q: Jasmine is making quarterly contributions of of $440 to her savings account which pays interest at…

A:

Q: se the information below to log Zoe’s payments and deposits in her checking account register.…

A: A checking account register keeps track of every transaction associated with your checking account,…

Q: Samantha and Samuel both have student credit cards issued by VISA. Their credit card statements show…

A: In the scenario presented, Samantha and Samuel both hold student credit cards issued by VISA, with…

Q: June Xu is a registered nurse who earns $3,250 per month after taxes. She has been reviewing her…

A: A deposit account that allows a user to withdraw and deposits money multiple times is known as the…

Q: Samantha and Samuel both have student credit cards issued by VISA. Their credit card statements show…

A: In the scenario presented, Samantha and Samuel both hold student credit cards issued by VISA, with…

Q: Last month, Kaitlin's average daily balance on her credit card was $1,363.16. The annual interest…

A: When people, organizations, or governments don't have instant access to enough money to cover…

Q: Bob owns a collection agency. He purchases uncollected accounts receivable from other businesses at…

A: Value of debt collected =$90,240Percentage of collectable = 70% Purchase price of collectable…

Q: n May 4 Ariel signed a simple discount note for $3,500 at 31/2% for 60 days. Calculate the proceeds…

A: The discount rate refers to the debt for a short period that is issued at the discount to par. These…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.