Question

Niles Hunt received this information on the statement from his bank. Find the (a) average daily balance-new purchases included, (b) finance charge, and (c) new balance. Reference Posting Date Transaction Date Description Purchases & Advances Payments & Credits $ 75. 66 $100. 00 1238090 2789433 3459811 4334681 2/5 2/10 2/17 2127 2/13 2/8 2/15 2/24 Home repairs PAYMENT Discount store PAYMENT 198. 33 50. 00 Billing Period Previous Balance Periodic Rate Finance Charge Average Daily Balance | a. 2/01-2/28 $36. 54 | b. 2. 1% Payments & Credits Purchases & Advances New Balance Minimum Payment Payment Due $273. 99 1 Ic $150. 00 $10. 00 3/15​

Answer 1

To find the (a) average daily balance-new purchases included, (b) finance charge, and (c) new balance, analyze the given information and perform the necessary calculations.

Step-by-step explanation:

To find the (a) average daily balance-new purchases included, (b) finance charge, and (c) new balance, we need to analyze the given information.

The average daily balance (a) can be calculated by adding up the balances for each day in the billing period and dividing by the number of days. In this case, the average daily balance for the billing period of 2/01-2/28 is $36.54.

The finance charge (b) can be calculated by multiplying the average daily balance by the periodic rate (2.1%) and the number of days in the billing period (28).

In this case, the finance charge is $17.32.

The new balance (c) can be calculated by adding the previous balance, purchases & advances, and the finance charge, and subtracting payments & credits. In this case, the new balance is $273.99.