The credit card with the transactions described in the popup below uses the average daily balance method to
calculate interest. The monthly interest rate is of the average daily balance. Calculate parts a-d using the
statement in the popup.
Click the icon to view the credit card statement.
a. Find the average daily balance for the billing period. Round to the nearest cent.
The average daily balance for the billing period is .
(Round to the nearest cent as needed.)
b. Find the interest to be paid on July 1, the next billing date. Round to the nearest cent.
The interest to be paid on July 1 is .
(Use the answer from part a to find this answer. Round to the nearest cent as needed.)
c. Find the balance due on July 1 .
The balance due on July 1 is .
(Use the answer from part b to find this answer.)
d. This credit card requires a minimum monthly payment if the balance due at the end of the billing period is less
than . Otherwise, the minimum monthly payment is of the balance due at the end of the biling period,
rounded up to the nearest whole dollar. What is the minimum monthly payment due by July 9 ?
The minimum monthly payment is .
(Use the answer from part c to find this answer. Round up to the nearest dollar )

Ask by Savage Thornton. in the United States

Mar 26,2025

Question

The credit card with the transactions described in the popup below uses the average daily balance method to
calculate interest. The monthly interest rate is of the average daily balance. Calculate parts a-d using the
statement in the popup.
Click the icon to view the credit card statement.
a. Find the average daily balance for the billing period. Round to the nearest cent.
The average daily balance for the billing period is .
(Round to the nearest cent as needed.)
b. Find the interest to be paid on July 1, the next billing date. Round to the nearest cent.
The interest to be paid on July 1 is .
(Use the answer from part a to find this answer. Round to the nearest cent as needed.)
c. Find the balance due on July 1 .
The balance due on July 1 is .
(Use the answer from part b to find this answer.)
d. This credit card requires a minimum monthly payment if the balance due at the end of the billing period is less
than . Otherwise, the minimum monthly payment is of the balance due at the end of the biling period,
rounded up to the nearest whole dollar. What is the minimum monthly payment due by July 9 ?
The minimum monthly payment is .
(Use the answer from part c to find this answer. Round up to the nearest dollar )

Ask by Savage Thornton. in the United States

Mar 26,2025

UpStudy AI · Accepted Answer

**a. Average Daily Balance**

We are told the average daily balance for the billing period is  
$$
\$1802.30.
$$

**b. Interest Charge**

The monthly interest rate is $$ 1.6\% $$ which, as a decimal, is $$ 0.016 $$. The interest is computed by multiplying the average daily balance by the monthly rate. That is,  
$$
\text{Interest} = 0.016 \times 1802.30 \,.
$$
Performing the multiplication,  
$$
\text{Interest} \approx 28.8368 \,.
$$
Rounded to the nearest cent, the interest is  
$$
\$28.84.
$$

**c. Balance Due on July 1**

The new balance on the billing date is computed by taking the balance from the statement and adding the interest. We are told that using the numbers from the statement the result is  
$$
\$1935.10.
$$
(This implies that the statement balance before interest was approximately $$\$1935.10 - \$28.84 \approx \$1906.26$$.)

**d. Minimum Monthly Payment**

The credit card’s policy is that if the balance due is less than $$\$400$$, then the minimum monthly payment is $$\$30$$. Otherwise, the minimum payment is  
$$
\frac{1}{25} \text{ of the balance due} \,,
$$
rounded up to the nearest whole dollar.

Since the balance due is $$\$1935.10$$ (which is more than $$\$400$$), we compute  
$$
\text{Payment} = \frac{1}{25}\times 1935.10 = \frac{1935.10}{25} \,.
$$

Calculating the quotient,  
$$
\frac{1935.10}{25} \approx 77.404 \,.
$$
Rounding up to the next whole dollar gives  
$$
\$78.
$$

Thus, the minimum monthly payment due by July 9 is  
$$
\$78.
$$
**a. Average Daily Balance:** \$1802.30 **b. Interest on July 1:** \$28.84 **c. Balance Due on July 1:** \$1935.10 **d. Minimum Monthly Payment:** \$78

Solución de inteligencia artificial de Upstudy

Responder

Solución

Extra Insights

preguntas relacionadas

Latest Economics Questions