Hi-- I could really use someone's help. I am really lost. Please explain so I can follow you. All help is greatly appreciated. Thanks!
On September 7, Julie paid for her textbooks with her credit card. The total bill was $159.80. When the bill came due at the end of September, she paid $50 of it. The $109.80 was then carried into October. On October 9, Julie charged a purchase of $27.45. On October 15, she charged $32.87. On October 20, she charged $15.25. Her credit card company charges 18.5% annual interest calculated on the average daily balance. Using the steps listed above, complete the chart and find Julie's average daily balance for October.
Date---Balance Due -----# of Days Bal. stayed the same -----(Balance) x(Days)
Oct. 1--- $109.80-----------8----------------- (109.80) x (8) = ________
Oct. 9 ---$137.25-----------6------------------ (137.25) x (6) = ________
Oct. 15 _______ ------- ___________ ------------------------------- _____________________
---------------------------------- Total ________________ ------------ _____________________
Average Daily Balance : ____________________________
B. The finance charge for the month is found using the simple interest formula (I = PRT) with the average daily balance as the principle. Calculate Julie's finance charge for the month of October. (Make sure you use the periodic interest rate.)
C. Calculate Julie's balance owed on November 1. (Purchases plus interest.)
On September 7, Julie paid for her textbooks with her credit card. The total bill was $159.80. When the bill came due at the end of September, she paid $50 of it. The $109.80 was then carried into October. On October 9, Julie charged a purchase of $27.45. On October 15, she charged $32.87. On October 20, she charged $15.25. Her credit card company charges 18.5% annual interest calculated on the average daily balance. Using the steps listed above, complete the chart and find Julie's average daily balance for October.
Date---Balance Due -----# of Days Bal. stayed the same -----(Balance) x(Days)
Oct. 1--- $109.80-----------8----------------- (109.80) x (8) = ________
Oct. 9 ---$137.25-----------6------------------ (137.25) x (6) = ________
Oct. 15 _______ ------- ___________ ------------------------------- _____________________
---------------------------------- Total ________________ ------------ _____________________
Average Daily Balance : ____________________________
B. The finance charge for the month is found using the simple interest formula (I = PRT) with the average daily balance as the principle. Calculate Julie's finance charge for the month of October. (Make sure you use the periodic interest rate.)
C. Calculate Julie's balance owed on November 1. (Purchases plus interest.)
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there are 31 days in October
on October 1 - 8 she had a balance of 109.80 (8 days)
on October 9 - 14 she had a balance of 137.25 (6 days)
on October 15 - 19 she had a balance of 170.12 (5 days)
on October 20 - 31 she had a balance of 185.37 (12 days)
(109.8 * 8 + 137.25 * 6 + 170.12 * 5 + 185.37 * 12) / 31
4776.94 / 31
154.09483870967741935483870967742
$154.09
I = Prt
I = 154.09 *.185 * (1/12)
I = 2.3755541666666666666666666666667
I = $2.38
154.09 + 2.38 = $156.47
on October 1 - 8 she had a balance of 109.80 (8 days)
on October 9 - 14 she had a balance of 137.25 (6 days)
on October 15 - 19 she had a balance of 170.12 (5 days)
on October 20 - 31 she had a balance of 185.37 (12 days)
(109.8 * 8 + 137.25 * 6 + 170.12 * 5 + 185.37 * 12) / 31
4776.94 / 31
154.09483870967741935483870967742
$154.09
I = Prt
I = 154.09 *.185 * (1/12)
I = 2.3755541666666666666666666666667
I = $2.38
154.09 + 2.38 = $156.47