2. The table below shows the activity on the credit card statement of Miss Pepper Mills for the month of April. She started the month with a balance of $342.57. Date Activity Location Amount
04/05 Payment Payment $200.00
04/15 Charge Gas $26.37
04/22 Charge Macy's $105.42
04/25 Charge Starbuck's $4.24

a. Find the average daily balance.

b. If her card charges an 18.5% annual interest rate on her average daily balance, calculate Miss Pepper Mill’s finance charge for the month of April.

The value of the average daily balance and the finance charge for Miss pepper mills are $123.732 and $0.32 respectively.

The average daily balance :

Sum of balances = (342.57+ (342.57-200) +(342.57 - 200 - 26.37) +(342.57-200-26.37-105.42) + (342.57-200-26.37-105.42-4.24)) = $618.66

Average daily balance :

Finance charge for April :

Average balance × daily rate

Therefore, the average daily balance and finance charge are $123.732 and $0.32 respectively

Learn more : 149.9448066146972668163077278862934016

Miss Pepper Mills

Credit Card Statement for the month of April:

a. Average Daily Balance:

Average balance = $618.66/5 = $123.73

b. Calculation of Miss Pepper Mill's Finance Charge for the month of April:

Finance charge

= 18.5% of $20.55 x 1/12

= $0.32

Step-by-step explanation:

a) Data and Calculations:

Activity on the credit card statement for April

Beginning balance = $342.57

Date    Activity    Location       Amount     Daily Balance

04/01  Balance                                           $342.57

04/05 Payment  Payment     $200.00       $142.57

04/15  Charge    Gas               $26.37        $116.20

04/22 Charge    Macy's        $105.42          $10.78

04/25 Charge    Starbuck's     $4.24          $6.54

30 days   Total =                                       $618.66

Average balance = Total of the daily balances divided by 30 days

= $618.66/30 = $20.55

10

step-by-step explanation:

7+3=10