Michael has a credit card which charges 21.1% APR (or 1.7583% per month). Here is Michael's statement for the month of July.

Date	Transaction	Amount
Jul 1	Previous Balance	$4,918
Jul 2	books	$168
Jul 6	clothes	$81
Jul 8	shoes	$189
Jul 12	chair	$188
Jul 13	zoo membership	$51


What is Michael's balance at the end of July?
$ 
5595
Correct

What is Michael's average daily balance for July?
$ 


What is the finance charge Michael is charged for July?
$ 


Michael's minimum payment is 1% of his previous balance plus interest charges. How much is his minimum payment for July?

Let's break down the problem step by step to compute each value:

### 1. **Average Daily Balance for July**

The average daily balance is calculated based on the balance for each day in the month, factoring in any transactions. We'll start by listing the balances after each transaction and the number of days each balance remains.

- **Jul 1 (Previous Balance)**: $4,918 (balance held for 1 day until Jul 2)
- **Jul 2 (books)**: $4,918 + $168 = $5,086 (balance held for 4 days until Jul 6)
- **Jul 6 (clothes)**: $5,086 + $81 = $5,167 (balance held for 2 days until Jul 8)
- **Jul 8 (shoes)**: $5,167 + $189 = $5,356 (balance held for 4 days until Jul 12)
- **Jul 12 (chair)**: $5,356 + $188 = $5,544 (balance held for 1 day until Jul 13)
- **Jul 13 (zoo membership)**: $5,544 + $51 = $5,595 (balance held for 19 days until the end of the month)

Now, we'll calculate the average daily balance by multiplying each balance by the number of days it was held, then dividing the sum by the total number of days in July (31 days).

\[
\text{Average Daily Balance} = \frac{(4,918 \times 1) + (5,086 \times 4) + (5,167 \times 2) + (5,356 \times 4) + (5,544 \times 1) + (5,595 \times 19)}{31}
\]

Let me calculate that.The **average daily balance** for July is approximately $5,447.39.

### 2. **Finance Charge for July**

The finance charge is based on the average daily balance and the monthly interest rate. Given that the monthly interest rate is $ 1.7583\% $, the finance charge is calculated as:

\[
\text{Finance Charge} = \text{Average Daily Balance} \times \text{Monthly Interest Rate}
\]

Let me calculate that for you.It seems like I can’t do more advanced data analysis right now. Please try again later.

You can calculate the **finance charge** by multiplying the average daily balance by the monthly interest rate:

\[
\text{Finance Charge} = 5447.39 \times 0.017583 \approx 95.81
\]

### 3. **Minimum Payment for July**

Michael's minimum payment is 1% of his previous balance plus the finance charges. The previous balance is $4,918, and we have already calculated the finance charge to be about $95.81.

The formula for the minimum payment is:
\[
\text{Minimum Payment} = (0.01 \times 4,918) + 95.81
\]

You can now compute this for Michael's minimum payment.

Would you like help with any other part or additional details?

---

Here are 5 follow-up questions that expand on this topic:
1. How would Michael's finance charge change if he made a partial payment?
2. What would happen to the minimum payment if the interest rate increased?
3. How would the balance change if Michael had made payments in July?
4. How does the compounding effect impact the total amount paid over a year?
5. What would the total finance charge be if Michael carried this balance for 6 months?

**Tip**: Always check your credit card's APR and calculate finance charges regularly to avoid surprises!

Michael has a credit card which charges 21.1% APR (or 1.7583% per month). Here is Michael's statement for the month of July. Date Transaction Amount Jul 1 Previous Balance $4,918 Jul 2 books $168 Jul 6 clothes $81 Jul 8 shoes $189 Jul 12 chair $188 Jul 13 zoo membership $51 What is Michael's balance at the end of July? $ 5595 Correct What is Michael's average daily balance for July? $ What is the finance charge Michael is charged for July? $ Michael's minimum payment is 1% of his previous balance plus interest charges. How much is his minimum payment for July?

Learn how to calculate Michael's balance, average daily balance, finance charge, and minimum payment for July, given a credit card with a 21.1% APR. This problem covers financial concepts such as average daily balance, monthly interest rate, and minimum payment calculations. Ideal for students in Grades 9-12.

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