13. larry has an average daily balance of $1,000 during a billing cycle and pays the balance in full before…

13. larry has an average daily balance of $1,000 during a billing cycle and pays the balance in full before the due date for that billing cycle. the annual interest rate is 19%. what is the total finance charge?\n4. susie’s credit card was stolen. the thief charged a $500 ring on the card before she reported it stolen. how much of the thief’s purchase is susie responsible for?

13. larry has an average daily balance of $1,000 during a billing cycle and pays the balance in full before the due date for that billing cycle. the annual interest rate is 19%. what is the total finance charge?\n4. susie’s credit card was stolen. the thief charged a $500 ring on the card before she reported it stolen. how much of the thief’s purchase is susie responsible for?

Answer

1. For Larry's finance - charge problem:

Explanation:

Step1: Recall finance - charge formula

If the balance is paid in full before the due date, the finance charge is $0$. This is because most credit - card companies do not charge interest when the balance is paid in full within the billing cycle.

Answer:

$0$

2. For Susie's credit - card theft problem:

Explanation:

Under the Fair Credit Billing Act in the United States, a cardholder's liability for unauthorized charges on a credit card is limited to $50$ if the card is lost or stolen and the cardholder reports the theft in a timely manner. Since there is no indication that Susie did not report it timely, her liability is capped at $50$.

Answer:

$50$