Suppose your MasterCard calculates interest using the average daily balance method, and the monthly interest rate is 1.1%. The itemized billing for the month of August is shown below. Detail Date Amount Unpaid balance August 1 $395 Charge
Suppose your MasterCard calculates interest using the average daily balance method, and the monthly interest rate is 1.1%. The itemized billing for the month of August is shown below. Detail Date Amount Unpaid balance August 1 $395 Charge
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suppose your MasterCard calculates interest using the average daily balance method, and the monthly interest rate is 1.1%. The itemized billing for the month of August is shown below.
| Detail | Date | Amount |
|---|---|---|
| Unpaid balance | August 1 | $395 |
| Charge | August 9 | $1040 |
| Charge | August 10 | $800 |
| Charge | August 18 | $1115 |
| Payment received | August 25 | $710 |
| Last day of billing period | August 31 | |
| Payment due date | September 7 |
(a) Find the average daily balance. $
(b) Find the interest due for this month. $
(c) Find the total balance owed on the last day of the billing period. $
(d) This credit card requires a $15 minimum payment or 1/24 of the amount due, whichever is higher. What is the minimum monthly payment due for this month? $
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