the credit card with the transactions described on the right uses the average daily balance method to…

the credit card with the transactions described on the right uses the average daily balance method to calculate interest. the monthly interest rate is 2.5% of the average daily balance. calculate parts a - d using the statement on the right.\ntransaction description\ttransaction amount\nprevious balance, $6220.00\noctober 1 billing date\noctober 5 payment\t$400.00 credit\noctober 7 charge: visit to doctor\t$60.00\noctober 12 charge: groceries\t$70.00\noctober 21 charge: car repairs\t$240.00\noctober 31 end of billing period\npayment due date: november 9\na. find the average daily balance for the billing period. round to the nearest cent.\nthe average daily balance for the billing period is $6050.32.\n(round to the nearest cent as needed.)\nb. find the interest to be paid on november 1, the next billing date. round to the nearest cent.\nthe interest to be paid on november 1 is $151.26.\n(use the answer from part a to find this answer. round to the nearest cent as needed.)\nc. find the balance due on november 1.\nthe balance due on november 1 is $ \n(use the answer from part b to find this answer.)

the credit card with the transactions described on the right uses the average daily balance method to calculate interest. the monthly interest rate is 2.5% of the average daily balance. calculate parts a - d using the statement on the right.\ntransaction description\ttransaction amount\nprevious balance, $6220.00\noctober 1 billing date\noctober 5 payment\t$400.00 credit\noctober 7 charge: visit to doctor\t$60.00\noctober 12 charge: groceries\t$70.00\noctober 21 charge: car repairs\t$240.00\noctober 31 end of billing period\npayment due date: november 9\na. find the average daily balance for the billing period. round to the nearest cent.\nthe average daily balance for the billing period is $6050.32.\n(round to the nearest cent as needed.)\nb. find the interest to be paid on november 1, the next billing date. round to the nearest cent.\nthe interest to be paid on november 1 is $151.26.\n(use the answer from part a to find this answer. round to the nearest cent as needed.)\nc. find the balance due on november 1.\nthe balance due on november 1 is $ \n(use the answer from part b to find this answer.)

Answer

Explanation:

Step1: Recall balance - due formula

The balance - due is the sum of the previous balance, new charges, and interest, minus the payment. First, we need to identify the relevant amounts. Previous balance = $6220$, payment = $400$, new charges = $60 + 70+240=370$, interest = $151.26$ (from part b).

Step2: Calculate balance - due

Balance due=Previous balance - Payment+New charges+Interest [ \begin{align*} &6220 - 400+370 + 151.26\ =&5820+370+151.26\ =&6190+151.26\ =&6341.26 \end{align*} ]

Answer:

$6341.26$