See BELOW for work/solutions to Q.s 32 &...
3
Transcript of See BELOW for work/solutions to Q.s 32 &...
halel
Text Box
See BELOW for work/solutions to Q.s 32 & 33.
halel
Typewritten Text
Ignore. I didn't this to you this year.
halel
Typewritten Text
halel
Typewritten Text
halel
Typewritten Text
halel
Typewritten Text
halel
Typewritten Text
halel
Typewritten Text
halel
Text Box
32.) Finance charge = 2.5% of the Average Daily Balance. So, we should find the average daily balance first! :) To find Average Daily Balance (which is the # the credit card company will charge you interest on): Dates Balance on Card Total for those days 4/1 - 4/16 $843 x 16 = $13,488 4/17 - 4/20 $714.50 x 4 = $2,868 4/21 - 4/28 $877.50 x 8 = $7,020 4/29 - 4/30 $942.25 x 2 = $1,884.50 Add all the days up to get = $25,260.50 Divide by # of days to get the DAILY AVERAGE = $842.02 (This is how much you owed, on average, every day this month. This is what the credit card company is going to charge you 2.5% interest on. ->) Multiply A.D.B. by interest rate to get FINANCE CHARGE = $842.02 * 2.5/100 = $21.05 33.) The new balance, is just how much we owed on 4/30 + the finance charge we just calculated. We can see from our work above that on 4/30 we had a balance of $942.25, so when we add the $21.05 finance charge, we have a NEW BALANCE of $963.30.
