Use the average daily balance method to compute the finance charge on the credit card account for the month of August (31 days). The starting balance from the previous month is $230. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 18% on the account and that the billing date is August 1st. The finance charge for the month of August is $. (Round to the nearest cent as needed.) Date August 6 August 14 August 20 Transaction Made payment of $85 Charged $140 for hiking boots Charged $17 for gasoline August 25 Charged $25 for restaurant meal

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Use the average daily balance method to compute the
finance charge on the credit card account for the month of
August (31 days). The starting balance from the previous
month is $230. The transactions on the account for the
month are given in the table to the right. Assume an annual
interest rate of 18% on the account and that the billing date
is August 1st.
The finance charge for the month of August is $.
(Round to the nearest cent as needed.)
Date
August 6
August 14
August 20
August 25
Transaction
Made payment of $85
Charged $140 for hiking boots
Charged $17 for gasoline
Charged $25 for restaurant meal
Transcribed Image Text:Use the average daily balance method to compute the finance charge on the credit card account for the month of August (31 days). The starting balance from the previous month is $230. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 18% on the account and that the billing date is August 1st. The finance charge for the month of August is $. (Round to the nearest cent as needed.) Date August 6 August 14 August 20 August 25 Transaction Made payment of $85 Charged $140 for hiking boots Charged $17 for gasoline Charged $25 for restaurant meal
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