+191 Hello,
1. A credit card account has a $456 balance on 7/8. A purchase of $112 was made on 7/16 and a payment of $342 was made on 7/28. The billing is 8/8
Find the average balance
I found : $5391.405405
I fell like this is not the right answer, I try to do it, but I feel like I did something wrong
The thing that bother me here, its the billing on the 8/8 and not on the 31 of the month.
Best
Thank you for your help !
The average balance will be:
(456 (8 days) + (456+112) (12 days) + (456 + 112 -342) (11 days)) / 31 days (August has 31 days)
417.74
+191 Thank you for you answer, then
If the average balance is 417.74,
If the annual rate is 15.6%, what is the interest on the card for the billing period ?
It would be : I : P*R*T so It would be
417.74 * 0.156 * t = 12 ?
Best,
Thank you for your answer, I am still confused about it :(
The interest is only for ONE MONTH, not an entire year, so: (1/12 of a year)
(417.74 x .156)/12
5.43
+191 Yes, I understand
But since it is for a Month + 8 days ?
Do I have to take the 8 days in account ?
Best,
