posted by .

Marsha must have surgery and she does not have the $2,700 cash necessary for the operation. Talking to an administrator at the hospital, she finds that it will accept MasterCard, VISA, and Discover credit cards. All of these credit cards have an APR of 13%, so she figures that it does not matter which card she uses, even though she plans to take a year to pay off the loan. Assume that Marsha makes a payment of $350 and then receives a bill. Show the interest from credit cards of 13% APR according to the previous balance, adjusted balance, and average daily balance methods. Assume that the month has 31 days and that it takes 14 days for Marsha's payment to be mailed and recorded. (Round your answers to the nearest cent.)

previous balance method

$ . 29.25

adjusted balance method

$ . 25.46

average daily balance

$ ....???

I can't figure out average daily balance. the answer i'm getting is 26.36, which is wrong.

please tell me where i did wrong.

10x2700 + 20x2350 = /30= * .13 * 30/365=25.36

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Credit Cards - Situations

    Here, Im given some lists of situations, and for each situation, Ive got to figure out if using credit would be a wise or unwise decision. Rosy’s car crashes down as she is on a business trip, its going to cost her over $2000 to …
  2. accounting

    Credit Policy Review The president, vice president, and sales manager of Moorer Corporation were discussing the company’s present credit policy. The sales manager suggested that potential sales were being lost to competitors because …
  3. Comm/155

    I need to know if these are correct I have Bolded the adverbs and underlined the adjectives. I have had both good and bad experiences when dealing with credit cards. My credit went from good to better and eventually to what I thought …
  4. comm 155

    Describe your experience with credit and credit cards in a brief paragraph using at least five adverbs and five adjectives in your description. Bold the adverbs and underline the adjectives. What is the most effective way to determine …
  5. Marketing

    1. Recently American Express, Visa and MasterCard have been pushing hard into the small-ticket end of the credit card market. The purchase of items such as fast food meals, and movie popcorn and candy have been targeted as growth areas …
  6. Comm 155

    I need help identifying the adverbs and adjectives. I am not sure which are which. Can someone please help me figure this out?
  7. com155

    Having a credit card could get someone into much trouble if it is not used responsibly. I personally have nightmares when it concerns credit cards. I do not like paying interest on something when it is not necessary. I learned how …
  8. com155

    Have I used adjectives and adverbs correctly here?
  9. Probability - PLEASE HELP

    From industry statistics, a credit card company knows that 0.8 of its potential card holders are good credit risks, and 0.2 are bad credit risks. The company uses discriminant analysis to screen credit card applicants and determine …
  10. Accounting

    The following is an excerpt from a conversation between the office manager, Mark Cottman and the president of Horowitz Construction Supplies, Co., Rosa Mullin. Horowitz sells building supplies to local contractors. Mark: Rosa, we’re …

More Similar Questions