Nancy Tai has recently opened a resolving charge account with MasterCard. Her credit limits is $ 1,000, but she not charged that much since opening the account. Nancy hasn't had the time to review her monthly statement promptly as she should, but over the upcoming weekend she plans to catch up on her work. She has been putting it off because she can't tell him much interest she paid or unpaid balance in November. She spilled watercolor paint on that portion of the statement.

In interviewing November's statement she notices that her beginning balance was $600 and that she made a $200 payment on November 10. She also charged purchases of $80 on November, 5, $100 on November 15, and $50 on November 30. She paid $5.27 in interest the month before. She does remember, though, seeing the letters APR and the number 16%. Also, the back of her statement indicating that interest was charged using the average daily balance method, including current purchases, which considers the day of a charge or credit.

1. Find the unpaid balance on November 30 before the interest is charged.

2. Assuming a 30-day period in November find the average daily balance.

3. Calculate the interest for November.
4. What was the unpaid balance for November after interest is charged?

1. To find the unpaid balance on November 30 before interest is charged, we need to calculate the total charges and payments made during the month.

Beginning balance: $600
Charges:
- November 5: $80
- November 15: $100
- November 30: $50

Total charges: $80 + $100 + $50 = $230

Payments:
- November 10: $200

Total payments: $200

Unpaid balance on November 30 before interest = Beginning balance + Total charges - Total payments
Unpaid balance on November 30 before interest = $600 + $230 - $200 = $630

Therefore, the unpaid balance on November 30 before interest is charged is $630.

2. To calculate the average daily balance, we need to determine the number of days each balance amount was outstanding during November.

Balance outstanding days:
- $600: 5 days (November 1-5)
- $800: 5 days (November 6-10)
- $900: 5 days (November 11-15)
- $950: 14 days (November 16-30)

Average daily balance = (Balance1 * Days1 + Balance2 * Days2 + Balance3 * Days3 + Balance4 * Days4) / Total days in the period

Average daily balance = ($600 * 5 + $800 * 5 + $900 * 5 + $950 * 14) / 30
Average daily balance = ($3,000 + $4,000 + $4,500 + $13,300) / 30
Average daily balance = $24,800 / 30
Average daily balance = $826.67

Therefore, the average daily balance for November is $826.67.

3. To calculate the interest for November, we need to multiply the average daily balance by the monthly interest rate. The monthly interest rate can be determined by dividing the APR (16%) by the number of months in a year (12).

Monthly interest rate = APR / 12
Monthly interest rate = 16% / 12
Monthly interest rate = 0.16 / 12
Monthly interest rate = 0.0133

Interest for November = Average daily balance * Monthly interest rate * Number of days in November
Interest for November = $826.67 * 0.0133 * 30
Interest for November = $330.67

Therefore, the interest charged for November is $330.67.

4. To find the unpaid balance for November after interest is charged, we need to add the interest to the unpaid balance on November 30 before interest is charged.

Unpaid balance after interest is charged = Unpaid balance on November 30 before interest + Interest for November
Unpaid balance after interest is charged = $630 + $330.67
Unpaid balance after interest is charged = $960.67

Therefore, the unpaid balance for November after interest is charged is $960.67.

To find the answers to these questions, we need to follow several steps:

1. Find the unpaid balance on November 30 before interest is charged:

The unpaid balance is the sum of the charges made minus the payments made. In this case, the charges made are $80 + $100 + $50 = $230, and the payment made is $200. So the unpaid balance on November 30 before interest is charged is $230 - $200 = $30.

2. Calculate the average daily balance:

To calculate the average daily balance, we need to consider the balance on each day of the month and divide it by the total number of days.

- From November 1 to November 10, the balance is $600.
- From November 11 to November 14, the balance is $600 - $200 = $400 (assuming the payment made on November 10 is deducted from the balance).
- From November 15 to November 29, the balance is $400 + $80 + $100 = $580 (including the charges made on November 15 and November 30).
- On November 30, the balance is $580 + $50 = $630.

To calculate the average daily balance, we add up the balances for each day and divide it by the number of days: ($600 * 10) + ($400 * 4) + ($580 * 15) + ($630 * 1) / 30 = $19,800 / 30 = $660.

Therefore, the average daily balance for November is $660.

3. Calculate the interest for November:

The interest is calculated using the average daily balance and the APR (annual percentage rate). We have the given APR of 16%.

To calculate the monthly interest, we need to divide the APR by 12 to get the monthly interest rate: 16% / 12 = 1.33%.

Multiply the average daily balance by the monthly interest rate: $660 * (1.33 / 100) = $8.76.

Therefore, the interest for November is $8.76.

4. Find the unpaid balance for November after interest is charged:

To find the unpaid balance after interest is charged, we need to add the interest to the unpaid balance on November 30 before interest is charged.

Unpaid balance on November 30 before interest: $30.
Interest for November: $8.76.

The unpaid balance after interest is charged is $30 + $8.76 = $38.76.

Therefore, the unpaid balance for November after interest is charged is $38.76.