Please Help Your credit card has a balance of $1,500. Its interest rate is 21%.
ID: 3185459 • Letter: P
Question
Please Help
Your credit card has a balance of $1,500. Its interest rate is 21%. You have stopped using the card, because you don't want to go any deeper into debt. Each month, you make the minimum required payment. Your credit card issuer recently changed their minimum required payment policy, in response to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. As a result, your minimum required payment is $47. (Round your answers to the nearest cent.)
A: During the January 10 through February 9 billing period, you pay the minimum required payment on January 25th. Find the average daily balance, the finance charge and the new balance. (The new balance includes the finance charge.)
(b) During the February 10 through March 9 billing period, you pay the minimum required payment on February 25th. Find the average daily balance, the finance charge and the new balance. (The new balance includes the finance charge.)
(c) During the March 10 through April 9 billing period, you pay the minimum required payment on March 25th. Find the average daily balance, the finance charge and the new balance. (The new balance includes the finance charge.)
average daily balance: finance charge: new balance: Your credit card has ale ce o S1,500 s terest rate is 21% You have s o ped us ng he car pecause you don't var to go any deeper i to de au month, you make he minitrur required pa r enL Your credit c d 1 su r recen y nang- ther mini num required payment policy, In response to the Bankruptcy Abuse Preventlon and Consumer Protection act of 2005. As a resu t, your minimum required payment is $47. (Round your answers to the nearest cent-) a) Dunn he January 10 hrou h Februa average daily balance s inance charga ncw balance 9 billing pen d y u dy the m murn re ured payment on ? n dry 24 Find the average daily bad ce, e fiance charged d the new Lean e The new bala endudes e n ce ch ge b) ouring the Fabruary 1o thraugh March 9hilling parlod, you pay the minimum raquired naymant on Fahnuary 25th. Find the average dally halance, tha financa charga and the naw halanca. (Ths new halanca includes tha financa charga.) average daily balance s inarice charge new belance )During the March 10 through Aprilbilling period, you pay the miimurequired peyment on March 2th. Find the average daily balance, te fi average daily balance tinance charge new halance charge and the new balace. The new balane inludes the finence charge.) (d) Campare the recults oprt(hrough e) with thase of Exercise 43. Discuss the impact of the credit card isuar's changa in their minimum raquired paymant polity. This answer has nat been graded yet Need Help?Rond IExplanation / Answer
a).If during the January 10 through February 9 billing period, the minimum required payment of $ 47 is paid on January 25th, the average daily balance, the finance charge and the new balance are as under:
Average daily balance
$ [1500*15+(1500-47)*16]/31 = $1475.74
Finance Charge
$25.83
New Balance
$1478.83
b). If during the February 10 through March 9 billing period, the minimum required payment of $ 47 is paid on February 25th, the average daily balance, the finance charge and the new balance are as under:
Average daily balance
$ [1478.83*15+(1478.83-47)*13]/28 = $1457.01
Finance Charge
$25.50
New Balance
$1457.33
c). If during the March 10 through April 9 billing period, the minimum required payment of $ 47 is paid on March 25th, the average daily balance, the finance charge and the new balance are as under:
Average daily balance
$ [1457.33*15+(1457.33-47)*16]/31 = $1433.07
Finance Charge
$25.08
New Balance
$1435.41
Average daily balance
$ [1500*15+(1500-47)*16]/31 = $1475.74
Finance Charge
$25.83
New Balance
$1478.83