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For the credit card​ account, assume one month between billing dates​ (with the appropriate number of​ days) and interest of
1.4 %
1.4% per month on the average daily balance. Find ​(a) the average daily​ balance, ​(b) the monthly finance​ charge, and ​(c) the account balance for the next billing.

Previous​ Balance: ​$739.32
July 7 Billing Date
July 16 Payment ​$300
July 28 Lunch ​$32.73
August 3 Concert tickets ​$79.52



Answer :

s1llvrya

Answer: (a) The average daily balance is approximately $472.05.

(b) The monthly finance charge is approximately $6.61.

(c) The account balance for the next billing is approximately $251.57.

Step-by-step explanation: simplify the problem step by step for the credit card account:

Calculate the Average Daily Balance (ADB):

  1. Add up the balances for each day based on the given transactions.
  2. Divide the total by the number of days in the billing cycle.

Calculate the Monthly Finance Charge:

  1. Multiply the ADB by the monthly interest rate (1.4%).
  2. This gives you the finance charge for the month.

Calculate the Account Balance for the Next Billing:

  1. Subtract any payments made during the billing cycle.
  2. Add any new charges (such as lunch or concert tickets).

Therefore:

(a) The average daily balance is approximately $472.05.

(b) The monthly finance charge is approximately $6.61.

(c) The account balance for the next billing is approximately $251.57.

hope this helps ^^

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