math finance question 1
A credit card has a balance of $800 on June 1 st . A payment of $400 is made on June 4 th . A charge of $120 is made on June 13 th , and another charge of $100 is made on June 26 th . Note that June is a 30-day month.
(A) Calculate the average daily balance for this card, with July 1 st as the date interest is charged.
Date |
Transaction amount |
Balance |
Number of days |
June 1 |
800 |
||
June 4 |
|||
June 13 |
|||
June 26 |
|||
July 1 |
(B) Find the interest charged for June on July 1 st , using an annual interest rate of 18%. Also, find the new balance for this card as of July 1 st with interest added on.