Ask Question
18 July, 23:54

A credit card bill for $559 was due on September 14. Purchases of $289 were made on September 19, and $15 was charged on September 28. A payment of $250 was made on September 25. The annual interest on the average daily balance is 19.5%. Find the finance charge due (in dollars) on the October 14 bill. (Use 365 for the number of days in a year. Enter a number. Round your answer to the nearest cent.)

+5
Answers (1)
  1. 19 July, 00:13
    0
    Answer: $623

    Step-by-step explanation:

    calculation of Finance charge due on October 14

    (+) $ 559 due on sep 14, $ 559 * (19.5*31) / (100 * 365) = $ 9.20

    (+) purchase $ 289 on sep 19, $ 289 * (19.5*26) / (100 * 365) = $ 2.42

    (+) finance charge on sep 28, $ 18 * (19.5*17) / (100 * 365) = $ 0.17

    (-) Repayment on 25 sep, $ 250 * (19.5*20) / (100 * 365) = (2.745)

    Total finance charges from 14 sep to 14 oct = $ 9.7 = appr. 10

    Amount due on 14 October = $559+$289+$15+$11.855 - $250

    = $ 623
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A credit card bill for $559 was due on September 14. Purchases of $289 were made on September 19, and $15 was charged on September 28. A ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers