Question

Kayla Sampson, an antiques dealer from Great Bend, Kansas, received her monthly billing statement for April for her MasterCard account. The statement indicated that she had a beginning balance of $600, on day 5 she charged $100, on day 12 she charged $300, and on day 15 she made a $200 payment. Out of curiosity, Kayla wanted to confirm that the finance charge for the billing cycle was correct (assume a 30-day month and that the card balance is actually reduced on the day the payment is made). What was Kayla's average daily balance for April without new purchases? Round your answer to the nearest dollar. Use rounded answer for later calculations.

What was her finance charge on the balance in part

(a) if her APR is 19.3 percent? Round your answer to the nearest cent.

$ What was her average daily balance for April with new purchases? Round your answer to the nearest dollar. Use rounded answer for later calculations.

$ What was her finance charge on the balance in part (c) if her APR is 19.3 percent? Round your answer to the nearest cent. $

Answer 1

Average daily balance			770.00
Finance charge			12.38

Workings

Avg Daily bal
From	To	Days	Balance	Days*Balance
1-Apr	5-Apr	4	600	2400.00
5-Apr	12-Apr	7	700	4900.00
12-Apr	15-Apr	3	1000	3000.00
15-Apr	30-Apr	16	800	12800.00
	TOTAL	30		23100.00