crealt-card interest? A credit card has a monthly rate of 1.58% and uses the ave

Question

crealt-card interest? A credit card has a monthly rate of 1.58% and uses the average daily balance method for calculating interest. Here are some of the details in the June 1-June 30 itemized billing: June 1:Unpaid Balance: June 7:Payment Purchases to the account: Average Daily Balance: Last day of Billing Period: Payment Due Date: $450.77 $135 $257.76 $342.77 June 30 July 9 a. Find the interest due on the payment due date. b. Find the total balance owed on the last day of the billing period. c. Minimum payment terms are shown below. What is the minimum payment due by July 9th? RI 02017 Staples, Inc 9361

Explanation / Answer

a) Interest = 342.77x(0.0158)x(1)

Interest = 5.42

b) Balance on last day = Opening balance + purchases - payments + interest

5.42+450.77-135+257.76 = 578.95

c) Minimum payment shall be = (1/10)x578.75 = 57.89

Rounded off to 58

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