8) Credit Card Payment. On May 12, the billing $378.50. For the period ending Ju
ID: 3146876 • Letter: 8
Question
8) Credit Card Payment. On May 12, the billing $378.50. For the period ending June 12, you had the following transactions: date for your card, you have an outstanding balance of May 13, $129.79 Purchase May 15, $50 Payment . June 1, $135.85 Purchase . June 8, $37.63 Purchase Find the average daily balance for the period, the finance charge on June 12, at an interest rate of 1.3% per month, and the balance due on June 12 9) Buying a Home. You purchase a home selling for $215,000. You make a 20% down payment and obtain a mortgage for the rest at 4.5% over 25 years. What is the principal for the mortgage and what is the monthly payment? 10) Research 3 credit cards, telling me the interest rates, penalties, rewards, and fees. Then tell me which one you would pick and why.Explanation / Answer
Outstanding balance on May 12, $378.50
The daily balance for each day during the billing cycle would be:
Day 1 (May 12): 1* $378.50 =$378.50
Day 2-Day 4 (May 13- May 15) : 3* ($378.50+$129.79) =3*$ 508.29 =$ 1524.87
Day 5- Day 19 (May 16- May 31): 15* ($ 508.29-$50)=16* $ 458.29= $ 7332.64
Day 20- Day 27 (June 1-June 7): 8*($ 458.29 + $135.85)= 8* ($594.14)=$ 4753.12
Day 28-Day 31 (June 8- June 11): 4*($594.14 +$ 37.63)=4*631.77=$ 2527.08
Total balance=$378.50 + $ 1524.87 + $ 7332.64 + $ 4753.12 + $ 2527.08 =$ 16516.21
Average daily balance= $ 16516.21/31= $ 532.78
Finance charges= $ 532.78* 0.013= $ 6.92614
Therefore, the amount due on June 12 is $ 16516.21+$ 6.92614= $ 16523.13614
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