HomeworkLib
Question

Cody Lind’s most recent credit card statement follows. His finance charge is 15% APR. Calculate Cody’s...

Cody Lind’s most recent credit card statement follows. His finance charge is 15% APR. Calculate Cody’s average daily balance, finance charge and new balance. (Round your final answers to the nearest cent.)

30-day billing cycle
9/2 Billing date $1,240 previous balance
9/7 Payment $600 cr.
9/13 Charge: Kohl’s $600
9/17 Payment $450 cr.
9/28 Charge: WalMart 180
Average daily balance $
Finance charge $
New balance
business   accounting   
1 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

✔ Recommended Answer
Answer #1

1. Average daily balance = Sum of balance at the end of each day/ no of days in billing cycle

=28770/30

=$959

Working notes:

Date Payment Charge balance
02-Sep 1240
03-Sep 1240
04-Sep 1240
05-Sep 1240
06-Sep 1240
07-Sep 600 640
08-Sep 640
09-Sep 640
10-Sep 640
11-Sep 640
12-Sep 640
13-Sep 600 1240
14-Sep 1240
15-Sep 1240
16-Sep 1240
17-Sep 450 790
18-Sep 790
19-Sep 790
20-Sep 790
21-Sep 790
22-Sep 790
23-Sep 790
24-Sep 790
25-Sep 790
26-Sep 790
27-Sep 790
28-Sep 480 1270
29-Sep 1270
30-Sep 1270
01-Oct 1270
28770

2. Finance charge= Average Balance*APR* No of days in billing cycle/365

=959*.15*30/365

=$11.82

3. new balance= $1270+11.82= $1281.82

1 0
Add a comment
Know the answer?
Add Answer to:
Cody Lind’s most recent credit card statement follows. His finance charge is 15% APR. Calculate Cody’s...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Cody Lind’s most recent credit card statement follows. His finance charge is 18% APR. Calculate Cody’s...

    Cody Lind’s most recent credit card statement follows. His finance charge is 18% APR. Calculate Cody’s average daily balance, finance charge and new balance. (Round your final answers to the nearest cent.) 30-day billing cycle 9/2 Billing date $1,090 previous balance 9/7 Payment $300 cr. 9/13 Charge: Kohl’s $450 9/17 Payment $300 cr. 9/28 Charge: WalMart 105 Average daily balance $ Finance charge $ New balance $

  • Cody Lind’s most recent credit card statement follows. His finance charge is 18% APR. Calculate Cody’s...

    Cody Lind’s most recent credit card statement follows. His finance charge is 18% APR. Calculate Cody’s average daily balance, finance charge and new balance. (Round your final answers to the nearest cent.) 30-day billing cycle 9/2 Billing date $1,130 previous balance 9/7 Payment $380 cr. 9/13 Charge: Kohl’s $390 9/17 Payment $340 cr. 9/28 Charge: WalMart 125 Find... 1. Average daily balance: $ 2. Finance charge: $ 3. New balance: $

  • Dallas Pierce's most recent credit card statement follows. His finance charge is 18% APR. Calculate Dallas's...

    Dallas Pierce's most recent credit card statement follows. His finance charge is 18% APR. Calculate Dallas's average daily balance finance charge, and new balance. (Round your final answers to the nearest cent.) 9/2 9/7 9/13 9/17 9/28 30-day billing cycle Billing date $1,200 previous balance Payment $ 100 cr. Charge: kohl's $ 350 Payment $ 200 cm Charge: Walmart s se Answer is complete but not entirely correct. Average daily balance Finance charge New balance $ $ $ 1.248 33®...

  • Calculate the average daily balance and finance charge. (Round your answers to the nearest cent.) 30-day...

    Calculate the average daily balance and finance charge. (Round your answers to the nearest cent.) 30-day billing cycle 9/16 Billing date Previous balance $ 3,300 9/19 Payment $ 73 cr. 9/30 Charge: Home Depot 2,150 10/3 Payment 73 cr. 10/7 Cash advance 83 Finance charge is 1.25% on average daily balance. What is the finance Charge and Average Daily Balance?

  • Calculate the average daily balance and finance charge. (Round your answers to the nearest cent.) $ 1,000 30-day b...

    Calculate the average daily balance and finance charge. (Round your answers to the nearest cent.) $ 1,000 30-day billing cycle Billing date Previous balance Payment Charge: Home Depot Payment 9/16 9/19 9/30 10/3 $ 50 CE 1,000 50 r. 10/7 Cash advance 60 . Finance charge is 1% on average daily balance. Average daily balance Finance charge If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct...

  • Your credit card lender charges an annual rate of 15 percent on the average daily balance....

    Your credit card lender charges an annual rate of 15 percent on the average daily balance. Your balance on March 10, the end of the last billing cycle, was $5,000. The following transactions were posted to your account during the billing cycle: 3/15 New credit purchase $500 3/20 Payment received    $750 4/1 New credit purchase $1,000 The last day of the monthly billing cycle is April 10. Calculate the finance charge.

  • Your credit card lender charges an annual rate of 15 percent on the average daily balance....

    Your credit card lender charges an annual rate of 15 percent on the average daily balance. Your balance on March 10, the end of the last billing cycle, was $5,000. The following transactions were posted to your account during the billing cycle: 3/15 New credit purchase $500 3/20 Payment received $750 4/1 New credit purchase $1,000 The last day of the monthly billing cycle is April 10. Calculate the finance charge.

  • Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days...

    Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $300 balance, 17%, $50 payment (a) previous balance method (b) adjusted balance method (average daily balance method

  • Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days...

    Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $500 balance, 17%, $50 payment (a) previous balance method $ (b) adjusted balance method $ (c) average daily balance method $.

  • The balance on Ramon Felipe's credit card on January 15, his billing date, was $383.28. For the period ending Febru...

    The balance on Ramon Felipe's credit card on January 15, his billing date, was $383.28. For the period ending February 15, Ramon had the following transactions to the right a) Find the average daily balance for the billing period. b) Find the finance charge to be paid on February 15. Assume an interest rate of 1.2% per month c) Find the balance due on February 15 $33.79 January 16 Charge: Restaurant meal January 30 Payment February 3 Charge: $150.00 $30.61...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT