Question
In: Finance
Nancy is reviewing her November credit card statement. Her beginning balance was $605 and she made...
Nancy is reviewing her November credit card statement. Her beginning balance was $605 and she made a $250 payment on November 10. She made purchases of $80 on November 5, $110 on Novemeber 15, and $50 on November 30. Her APR is 12% and the interest was charged using the average daily balance method, including current purchases, which considers the day of a charge or credit.
Solutions
Expert Solution
| Date | Opening balance | Debits | Credits | Closing balance | |
| 1-Nov | 605.00 | - | - | 605.00 | |
| 2-Nov | 605.00 | - | - | 605.00 | |
| 3-Nov | 605.00 | - | - | 605.00 | |
| 4-Nov | 605.00 | - | - | 605.00 | |
| 5-Nov | 605.00 | 80.00 | - | 685.00 | |
| 6-Nov | 685.00 | - | - | 685.00 | |
| 7-Nov | 685.00 | - | - | 685.00 | |
| 8-Nov | 685.00 | - | - | 685.00 | |
| 9-Nov | 685.00 | - | - | 685.00 | |
| 10-Nov | 685.00 | - | 250.00 | 435.00 | |
| 11-Nov | 435.00 | - | - | 435.00 | |
| 12-Nov | 435.00 | - | - | 435.00 | |
| 13-Nov | 435.00 | - | - | 435.00 | |
| 14-Nov | 435.00 | - | - | 435.00 | |
| 15-Nov | 435.00 | 110.00 | - | 545.00 | |
| 16-Nov | 545.00 | - | - | 545.00 | |
| 17-Nov | 545.00 | - | - | 545.00 | |
| 18-Nov | 545.00 | - | - | 545.00 | |
| 19-Nov | 545.00 | - | - | 545.00 | |
| 20-Nov | 545.00 | - | - | 545.00 | |
| 21-Nov | 545.00 | - | - | 545.00 | |
| 22-Nov | 545.00 | - | - | 545.00 | |
| 23-Nov | 545.00 | - | - | 545.00 | |
| 24-Nov | 545.00 | - | - | 545.00 | |
| 25-Nov | 545.00 | - | - | 545.00 | |
| 26-Nov | 545.00 | - | - | 545.00 | |
| 27-Nov | 545.00 | - | - | 545.00 | |
| 28-Nov | 545.00 | - | - | 545.00 | |
| 29-Nov | 545.00 | - | - | 545.00 | |
| 30-Nov | 545.00 | 50.00 | - | 595.00 | |
| - | - | - | - | ||
| Total | 240.00 | 250.00 | 16,790.00 | [A] | |
| Number of days | 30 | [B] | |||
| Average balance | 559.67 | [A/B] | |||
| Interest rate | 12.00% | ||||
| Interest to be paid | 5.52 | [ 16790 × 0.12 × 30/365 ] | |||
| Ending balance on card | 600.52 | [ 595 + 5.52] |
jeff jeffy answered 1 year agoRelated Solutions
On November 1st, Ava’s credit card has a balance of $4,501.00. According to the terms of...
On November 1st, Ava’s credit card has a balance of $4,501.00.
According to the terms of the card’s lending agreement, an interest
rate of 18% per year is assessed and the monthly finance charges
are calculated using the Average Daily Balance (ADB) including
purchases method.
During the month, Ava expects to make the purchases listed below
and will make a payment of $337.58 on November 25thth, and has
collected the following additional information:
Date
Purchases
November 5
$1,835.95
November 15...
She uses e-commerce or she pays by credit card. She does not pay by credit card....
She uses e-commerce or she pays by credit card. She does not pay
by credit card. Using a truth table we get result ending T T F F
with the T matching with T's in premsis so it is valid,
but in this problem the only Ts from the premises match with the
T in ending column of truth table MY QUESTION IS WHY IS THIS
INVALID WHILE THE ABOVE IS VALID DOES IT HAVE TO BE A TATUOLOGY TO...
Paul has a credit card balance of $3000 at the beginning of the month. He pays...
Paul has a credit card balance of $3000 at the beginning of the
month. He pays $1500 on the 10th and makes no additional charges.
Assuming a 30 day month and a 12 % annual interest rate what would
be the interest charge for the month?
Name at least FIVE ways the CARD Act of 2009 protects consumers
from predatory lending practices.
What advantages are associated with having a higher credit
score?
Using sources on the internet, please list at...
Assume the following: Melita carried an average daily balance of $521 on her credit card this...
Assume the following: Melita carried an average daily balance
of $521 on her credit card this month. Her previous balance last
month was $1,047, compared to a balance of $53 this month. There
are 30 days in this billing cycle and Melita always makes a payment
on the fifteenth of the month. Based on this information,
calculate the monthly interest charges for credit card accounts
charging 16 percent,18 percent, and 20 percent interest. Complete
the following chart. Since the average...
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...
Ashley had $10,000 in credit card debt. She negotiated a settlement with the credit card company,...
Ashley had $10,000 in credit card debt. She negotiated a
settlement with the credit card company, and the credit card
company agreed to cancel $6,000 of the debt.
If Ashley has total assets of $25,000 and total liabilities of
$50,000 at the time the debt was cancelled, what amount of gross
income does Ashley have as a result of the credit card company
cancelling $6,000 of her debt?
Phoebe realizes that she has charged too much on her credit card and has racked up...
Phoebe realizes that she has charged too much on her credit card
and has racked up $5,000 in debt. If she can pay $250 each month
and the card charges 20 percent APR (compounded monthly), how long
will it take her to pay off the debt, in months?
Phoebe realizes that she has charged too much on her credit card and has racked up...
Phoebe realizes that she has charged too much on her credit card
and has racked up $5,000 in debt. If she can pay $250 each month
and the card charges 20 percent APR (compounded monthly), how long
will it take her to pay off the debt, in months? (Round your answer
upwards to the nearest whole number of months and do not use
decimals. For example, 9.6 months rounds to 10 months.)
Mary's credit card situation is out of control because she cannot afford to make her monthly...
Mary's credit card situation is out of control because she
cannot afford to make her monthly payments. She has three credit
cards with the following loan balances and APRs: Card 1,
$4,700, 19%; Card 2, $5,500, 23%; and Card 3, $3,100,
17%. Interest compounds monthly on all loan balances. A credit
card loan consolidation company has captured Mary's attention by
stating they can save Mary 24% per month on her credit card
payments. This company charges 15.5% APR. Is the...
1. Juan Martinez was reviewing his recent bank credit card account statement when he found two...
1. Juan Martinez was reviewing his recent bank credit card
account statement when he found two charges involving a hotel room
rental and a meal, purchased on the same day in a city than Juan
knew he had not been to. Their charges totaled $229.99 out of
Juan’s $529.99 balance for the month.
a. What payment should Juan make on the account?
b. How should he notify the credit card issuer about the
unauthorized use?
c. Once the matter is...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Write a version of the binary search algorithm that can be used to search a string...
- Using the following reduction potentials: I2(s) + 2e- <---> 2I-(aq) E0 = 0.535 V I2 (aq)...
- Why are learnability and critical thinking crucial skills for the 21stcentury? And, how can you improve...
- Hudson Corporation is considering three options for managing its data warehouse: continuing with its own staff,...
- LUVE produces bracelets. Each band generates $460 in revenue and requires one ounce of gold as...
- (The following data apply to the next three questions.) Assume the following cost and revenue data...
- C# programming Create a classes called AlphabetDice that simulates a multi-sided dices with alphabet characters on...
ADVERTISEMENT