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 1.5% of the average daily balance. calculate parts a - d using the statement on the right.\ntransaction description\nprevious balance, $6290.00\nmarch 1 billing date\nmarch 5 payment $400.00 credit\nmarch 7 charge: restaurant $30.00\nmarch 12 charge: groceries $100.00\nmarch 21 charge: car repairs $240.00\nmarch 31 end of billing period\npayment due date: april 9\na. find the average daily balance for the billing period. round to the nearest cent.\nb. find the interest to be paid on april 1, the next billing date. round to the nearest cent.\n(use the answer from part a to find this answer. round to the nearest cent as needed.)\nc. find the balance due on april 1.\nthe balance due on april 1 is $\n(use the answer from part b to find this answer.)\nd. this credit card requires a $10 minimum monthly payment if the balance due at the end of the billing period is less than $360. otherwise, the minimum monthly payment is 1/36 of the balance due at the end of the billing period, rounded up to the nearest whole dollar. what is the minimum monthly payment due by april 9?\nthe minimum monthly payment is $\n(use the answer from part c to find this answer. round up to the nearest dollar.)

the credit card with the transactions described on the right uses the average daily balance method to calculate interest. the monthly interest rate is 1.5% of the average daily balance. calculate parts a - d using the statement on the right.\ntransaction description\nprevious balance, $6290.00\nmarch 1 billing date\nmarch 5 payment $400.00 credit\nmarch 7 charge: restaurant $30.00\nmarch 12 charge: groceries $100.00\nmarch 21 charge: car repairs $240.00\nmarch 31 end of billing period\npayment due date: april 9\na. find the average daily balance for the billing period. round to the nearest cent.\nb. find the interest to be paid on april 1, the next billing date. round to the nearest cent.\n(use the answer from part a to find this answer. round to the nearest cent as needed.)\nc. find the balance due on april 1.\nthe balance due on april 1 is $\n(use the answer from part b to find this answer.)\nd. this credit card requires a $10 minimum monthly payment if the balance due at the end of the billing period is less than $360. otherwise, the minimum monthly payment is 1/36 of the balance due at the end of the billing period, rounded up to the nearest whole dollar. what is the minimum monthly payment due by april 9?\nthe minimum monthly payment is $\n(use the answer from part c to find this answer. round up to the nearest dollar.)

Answer

Explanation:

Step1: Calculate number of days in billing period

The billing period is from March 1 - March 31, so there are 31 days.

Step2: Calculate balance for each day - part 1

March 1 - March 4: Balance = $6290.00 (4 days) March 5: Balance = $6290 - 400= $5890.00 March 5 - March 6: Balance = $5890.00 (2 days) March 7: Balance = $5890+30 = $5920.00 March 7 - March 11: Balance = $5920.00 (5 days) March 12: Balance = $5920 + 100= $6020.00 March 12 - March 20: Balance = $6020.00 (9 days) March 21: Balance = $6020+240 = $6260.00 March 21 - March 31: Balance = $6260.00 (11 days)

Step3: Calculate average daily balance

[ \begin{align*} \text{Average daily balance}&=\frac{(6290\times4)+(5890\times2)+(5920\times5)+(6020\times9)+(6260\times11)}{31}\ &=\frac{25160 + 11780+29600+54180+68860}{31}\ &=\frac{199580}{31}\ &\approx 6438.06 \end{align*} ]

Step4: Calculate interest

Monthly interest rate (r = 1.5%=0.015) Interest (I=\text{Average daily balance}\times r) (I = 6438.06\times0.015\approx96.57)

Step5: Calculate balance due

Balance due = Average daily balance+Interest Balance due (=6438.06 + 96.57=6534.63)

Step6: Calculate minimum payment

Since (6534.63>360), minimum payment (=\frac{1}{36}\times6534.63\approx 181.52), rounded up to $182

Answer:

a. $6438.06 b. $96.57 c. $6534.63 d. $182