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You have a credit card account with a previous balance of $635. You added two additional purchases for $75 on day 10 and $50 on day 25 of this billing period. You made a payment of $150, which was received on day 30. Your APR is 16.5%. Using the average daily balance method, what is your new balance?

Respuesta :

anthougo

Using the average daily balance method, the new balance of your credit card account is $619.56.

Data and Calculations:

Previous balance = $635

Day 10 Purchases = $75

Day 25 Purchases = $50

Day 30 Payment = $150

APR = 16.5%

Monthly APR = 1.375% (16.5%/12)

Credit Card Account:

Date     Description         Debit    Credit     Balance

Day 1   Balance                                           $635.00

Day 1 - Day 9 Interest      $2.62                 $637.62 ($635 x 1.375% x 9/30)

Day 10 Purchases          $75.00                 $712.62

Day 10 - Day 24 Interest $4.90                  $717.52 ($712.62 x 1.375% x 15/30)

Day 25 Purchases        $50.00                 $767.52

Day 25 - Day 29 Interest $1.76                 $769.28 ($767.52 x 1.375% x 5/300

Day 30 Payment                           $150     $619.28

Day 30 Interest             $0.28                   $619.56 ($619.28 x 1.375% x 1/30)

Thus, using the average daily balance method, the new balance of your credit card account is $619.56.

Learn more about credit card balance at https://brainly.com/question/6872962

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