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.
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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] |
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