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Question 15. Question : (TCO 3) Allison Smith starts the month with a
balance of $1,100 on her credit card. On the 10th day of the month,
she purchases $200 in clothes with her credit card. On the 15th day of
the month, she makes a payment on her credit card of $500. The
average daily balance for the month including the new purchase is
$883. The average daily balance for the month excluding the new
purchase is $750. Allison's interest rate is 1.5% for the month.
Allison's bank calculates the finance charge on the credit card by
using the adjusted balance method. What would Allison's finance
charges be for the month?
$7.50
$9.00
$11.25
$13.25
$16.50
Question 16. Question : (TCO 3) Sarah Russell starts the month with a
balance of $1,000 on her credit card. On the 10th day of the month,
she purchases $200 in clothes with her credit card. On the 15th day of
the month she makes a payment on her credit card of $500. The
average daily balance for the month including the new purchase is
$883. The average daily balance for the month excluding the new
purchase is $750. Sarah's interest rate is 1.5% for the month. Sarah's
bank calculates the finance charge on the credit card by using the
average daily balance, excluding new purchases. What would Sarah's
finance charges be for the month?