Question

Inigo Montoya has a Bank of Florin revolving credit account with an annual percentage rate of 24% calculated on the previous month’s balance. In April, the account had the following activity. On April 1 the previous balance was $301.98; on April 8, Inigo charged $250.00 at Mason’s Gym; on April9 he made a payment of $75.00; on April 15 he spent $124.80 at Nordstrom; on April 25 he took out a $100.00 cash advance; and on April 28 he stayed at the Rimrock Hotel for $178.90

What is Inigo’s new balance?

Answer 1

From the given probelm, We assumed that interest on outstanding balance is calculated on daily basis.

Calculation of Closing Balance of Inigo
S.No	Date	Next Transaction Date	No. of Days	Opening Balance	Withdrawl	Deposit	Closing Balance	Interest @ 24% p.a	Balance
	A	B	C=B-A	D	E	F	G = D+E-F	H = G*(C/365)*24/100	H
1	01st April	08th April	7	302.0	-	-	302.0	1.4	303.4
2	08th April	09th April	1	303.4	250.0	-	553.4	0.4	553.7
3	09th April	15th April	6	553.7	-	75.0	478.7	1.9	480.6
4	15th April	25th April	10	480.6	124.8	-	605.4	4.0	609.4
5	25th April	28th April	3	609.4	100.0	-	709.4	1.4	710.8
6	28th April	30th April	3	710.8	-	-	710.8	1.4	712.2

The outstanding balance on as on 30th April is $712.2.