Question

In: Finance

On September 7​, the billing​ date, Verna had a balance due of ​$565.85 on her credit...

On September 7​, the billing​ date, Verna had a balance due of ​$565.85 on her credit card. Assume that the interest rate is​ 1.1% per month. Suppose that​ Verna's bank uses the average daily balance method. Answer parts​ (a) through​ (d). Sept. 11 Payment ​$280.00 Sept. 23 ​Charge: Airline ticket ​$332.00 Sept. 24 ​Charge: Hotel bill ​$190.01 Oct. 2 ​Charge: Clothing ​$84.91 ​a) Determine​ Verna's average daily balance for the billing period from September 7 to October 7. The average daily balance for the billing period was ​$

Solutions

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.

jeff jeffy answered 6 months ago
Next > < Previous

Related Solutions

On the December 8 billing date, Hakeem had a balance due of $617.91 on his credit...
On the December 8 billing date, Hakeem had a balance due of $617.91 on his credit card. The transactions during the following month were: December 10 Charge: football tickets $170.24 December 12 Payment: $93.12 January 3 Charge: restaurant meal $53.36 The interest rate on the card is 16% per month. Using the average daily balance method, find the finance charge and the balance due on January 8. (The finance charge is $112.75 and the balance due is $861.14, but I...
On the November 6 billing date, Pedro had a balance due of $455.76 on his credit...
On the November 6 billing date, Pedro had a balance due of $455.76 on his credit card. The Transactions during the following month were: November 8th Charge- $51.46 November 9th Payment-$68.83 November 13th charge- $232.85 December 3rd charge- $30.26 The interest rate on the card is 1.6% per month. Using the Average daily balance method, find: A. the average daily balance for the billing period B. the finance charge to be paid on December 6, Pedro's next billing date. C....
On March 5, the billing date Anna has a balance of 567.20 on her credit card....
On March 5, the billing date Anna has a balance of 567.20 on her credit card. The transcations during the following month were March 8 Payment $275.00 March 21 Charge Shopping $330.00 March 27 Charge Nails $190.80 April 2 Charge Clothing $84.75 FInd the finance charge on April 5 using the unpaid balance method. (the unpaid balance uses the final balance on April 5 as the principal. Interest rate ise 1.1% per month. Find the balance due on April 5...
Find the average daily balance for the given​ credit-card account. Assume the billing date is the...
Find the average daily balance for the given​ credit-card account. Assume the billing date is the same day in each​ month, and use the number of days in each month. Then find the finance charge if interest is 1.11.1​% per month on the average daily balance.​ Finally, find the balance at the end of the billing cycle. Previous balance ​$655.39655.39 Jan. 15Jan. 15 Billing Date Jan. 20Jan. 20 Mail Order ​$nbsp 21.91 21.91 Jan. 23Jan. 23 Returns CR ​$nbsp 19.45...
Calvin Hopkins has a credit card for which the billing date is the same each month....
Calvin Hopkins has a credit card for which the billing date is the same each month. Here are the transactions for the last month: Previous Balance                    $634.27 April 15 Billing Date April 21 Return Credit            $116.36 April 22 Purchase                   $101.02 April 30 Purchase                   $122.16 May 8 Payment Credit            $200.00 Find the average daily balance.    The monthly interest charge is 1 ½% per month on the average daily balance. Find the finance charge. SHOW ALL WORK!!!
Smith Company started business on September 1. Smith had credit sales of $200,000 in September and...
Smith Company started business on September 1. Smith had credit sales of $200,000 in September and $300,000 in October. The pattern for collection of cash from customers is expected to be 40% in the month of sale (subject to a 2% cash discount), 50% in the month following the month of sale, and 7% in the second month following the month of sale, with 3% uncollectible. How much cash did Smith Company receive from customers on account during October?.
Smith Company started business on September 1. Smith had credit sales of $200,000 in September and...
Smith Company started business on September 1. Smith had credit sales of $200,000 in September and $300,000 in October. The pattern for collection of cash from customers is expected to be 40% in the month of sale (subject to a 2% cash discount), 50% in the month following the month of sale, and 7% in the second month following the month of sale, with 3% uncollectible. How much cash did Smith Company receive from customers on account during October?
ASSIGNMENT 1 · ECON 3060 - 01 Due Date: September 4, 2019 1) The Graduate Management...
ASSIGNMENT 1 · ECON 3060 - 01 Due Date: September 4, 2019 1) The Graduate Management Admission Test (GMAT) is a standardized test used by schools to determine the aptitude of individuals who are applying for MBA programs. The range of the GMAT score is 200-800. Brian has recently taken the exam and scored 720. This is an example of _______ data. A) nominal B) ordinal C) interval D) ratio 2) A respondent of a survey indicates that she is...
Determine Due Date and Interest on Notes Determine the due date and the amount of interest...
Determine Due Date and Interest on Notes Determine the due date and the amount of interest due at maturity on the following notes: Date of Note Face Amount Interest Rate Term of Note a. January 10* $40,000 5% 90 days b. March 19 18,000 8 180 days c. June 5 90,000 7 30 days d. September 8 36,000 3 90 days e. November 20 27,000 4 60 days *Assume that February has 28 days. Assume 360-days in a year when...
Mercantile credit analysis is done: each time the debtor misses a due date. every time a...
Mercantile credit analysis is done: each time the debtor misses a due date. every time a purchase is made on account. at regular intervals such as every six months or every year. upon receipt of a credit application. A PMSI (Purchase Money Security Interest) is Taken by the seller of the collateral to secure payment of all or part of its purchase price. Never used by trade creditors. Always required for consumer credit. Part of any strong commercial credit recommendation....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT