Math Problem Statement
On May 1, the balance on your credit card is $579.30. On May 2, you make a purchase for $85.61. On May 9, you make a payment of $280. On May 17, you make a purchase for $31.22, and on May 29, you make a purchase for $49.25.
Assume the billing date is the 1st of the month and the monthly finance charge is 1.9%.
What is the average daily balance? $Incorrect
What is the monthly finance charge? $Incorrect
What is the balance at the start of the next month? $
Solution
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Math Problem Analysis
Mathematical Concepts
Finance
Average Daily Balance
Interest Calculation
Formulas
Average Daily Balance = (Sum of weighted balances) / (Number of days in billing cycle)
Monthly Finance Charge = Average Daily Balance * Monthly Finance Rate
Theorems
-
Suitable Grade Level
Grades 10-12
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