Question
In: Finance
Calculate the average daily balance and finance charge: (Assume a 30-day billing cycle.) 4. 4/20 Billing...
Calculate the average daily balance and finance charge:
(Assume a 30-day billing cycle.)
|
4. |
4/20 |
Billing date previous balance |
$700 |
||
|
4/26 |
Payment |
200 |
|||
|
4/30 |
Charge |
400 |
|||
|
5/4 |
Payment |
150 |
|||
|
5/12 |
Cash advance |
180 |
|||
|
APR is 12% |
|||||
Solutions
Expert Solution
| Date | Opening balance | Debits | Credits | Closing balance | |
| 20-Apr | 700.00 | - | - | 700.00 | |
| 21-Apr | 700.00 | - | - | 700.00 | |
| 22-Apr | 700.00 | - | - | 700.00 | |
| 23-Apr | 700.00 | - | - | 700.00 | |
| 24-Apr | 700.00 | - | - | 700.00 | |
| 25-Apr | 700.00 | - | - | 700.00 | |
| 26-Apr | 700.00 | - | 200.00 | 500.00 | |
| 27-Apr | 500.00 | - | - | 500.00 | |
| 28-Apr | 500.00 | - | - | 500.00 | |
| 29-Apr | 500.00 | - | - | 500.00 | |
| 30-Apr | 500.00 | 400.00 | - | 900.00 | |
| 1-May | 900.00 | - | - | 900.00 | |
| 2-May | 900.00 | - | - | 900.00 | |
| 3-May | 900.00 | - | - | 900.00 | |
| 4-May | 900.00 | - | - | 900.00 | |
| 5-May | 900.00 | - | 150.00 | 750.00 | |
| 6-May | 750.00 | - | - | 750.00 | |
| 7-May | 750.00 | - | - | 750.00 | |
| 8-May | 750.00 | - | - | 750.00 | |
| 9-May | 750.00 | - | - | 750.00 | |
| 10-May | 750.00 | - | - | 750.00 | |
| 11-May | 750.00 | - | - | 750.00 | |
| 12-May | 750.00 | 180.00 | - | 930.00 | |
| 13-May | 930.00 | - | - | 930.00 | |
| 14-May | 930.00 | - | - | 930.00 | |
| 15-May | 930.00 | - | - | 930.00 | |
| 16-May | 930.00 | - | - | 930.00 | |
| 17-May | 930.00 | - | - | 930.00 | |
| 18-May | 930.00 | - | - | 930.00 | |
| 19-May | 930.00 | - | - | 930.00 | |
| Total | 580.00 | 350.00 | 23,390.00 | [A] | |
| Number of days | 30 | [B] | |||
| Average balance | 779.67 | [A/B] | |||
| Interest rate | 12.00% | ||||
| Interest to be paid | 7.69 | [ 23390 × 0.12 × 30/365 ] | |||
| Balance due | 787.36 | [ 779.67 + 7.69] |
Average daily balance is 779.67
Finance charge 7.69
jeff jeffy answered 2 years agoRelated Solutions
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