use the credit - card statement below to answer questions 1 - 6.\naccount information\naccount number…

use the credit - card statement below to answer questions 1 - 6.\naccount information\naccount number 41070000\ntransactions\n9 may\n12 may 320104271 fanelli furs\n15 may 504683210 brooklyn pets\n18 may 7677005385 maple garage\n21 may 8705713201 payment\n321447162 carusos restaurant\nsummary\nprevious balance $420.50\npayments / credits $150.00\nnew purchases $1,227.24\nlate charge $0.00\nfinance charge $19.80\ntotal credit line\ntotal available credit $3,000.00\n$1,001.51\naverage daily balance $1,190.97\n# days in billing cycle 30\napr 19.8%\nmonthly period rate 1.65%\n1. how many purchases were made during the billing cycle?\n2. what is the sum of all the purchases made during this billing cycle?\n3. when is the payment for this bill due?\n4. how many days are in this billing cycle?\n5. what is the previous balance?\n6. the finance charge (interest) is calculated using what numbers?\nwhat is the difference between a debit card and a credit card?

use the credit - card statement below to answer questions 1 - 6.\naccount information\naccount number 41070000\ntransactions\n9 may\n12 may 320104271 fanelli furs\n15 may 504683210 brooklyn pets\n18 may 7677005385 maple garage\n21 may 8705713201 payment\n321447162 carusos restaurant\nsummary\nprevious balance $420.50\npayments / credits $150.00\nnew purchases $1,227.24\nlate charge $0.00\nfinance charge $19.80\ntotal credit line\ntotal available credit $3,000.00\n$1,001.51\naverage daily balance $1,190.97\n# days in billing cycle 30\napr 19.8%\nmonthly period rate 1.65%\n1. how many purchases were made during the billing cycle?\n2. what is the sum of all the purchases made during this billing cycle?\n3. when is the payment for this bill due?\n4. how many days are in this billing cycle?\n5. what is the previous balance?\n6. the finance charge (interest) is calculated using what numbers?\nwhat is the difference between a debit card and a credit card?

Answer

Explanation:

Step1: Count purchase transactions

By looking at the transaction list, we see 5 purchase - related transactions (excluding the payment transaction).

Step2: Sum of purchases

From the summary section, new purchases are $1,227.24.

Step3: Find payment due date

From the card statement, payment due date is 30 May.

Step4: Determine billing cycle days

From the summary section, the number of days in the billing cycle is 30.

Step5: Identify previous balance

From the summary section, previous balance is $420.50.

Step6: Finance charge numbers

Finance charge is calculated using the average daily balance ($1,190.97) and the monthly periodic rate (1.65%).

Answer:

  1. 5
  2. $1,227.24
  3. 30 May
  4. 30
  5. $420.50
  6. Average daily balance ($1,190.97) and monthly periodic rate (1.65%)