Question

Beth Johnson's bank card account charges 1.1% every month on the average daily balance as well as the following special fees:Cash advance fee: 2% ( not less than $2 nor more than $10)Late payment fee: $25Over-the - credit- limit fee $10In the month of June, Beth's average daily balance was $1886. She was on vacation during the month and did not get her account payment in on time, which resulted in a late payment and resulted in charges accumulating to a sum above her credit limit. She also used her card for five Cash advances of$100,while on vacation. Find the special fees charged to the account based on account transactions in that month. The special fees are?

Answer 1

List of special fees paid by Beth:

1.Late payment fee: $25.

2.Cash advance fee: $10.

2% of $100 multiplied by 5 is equal to (2/100)(100)(5) = 10.

3.Over-the - credit- limit fee: $10

The addition of the special fees is equal to $45. (After adding $25+$10+$10)

The answer $45.