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Unformatted text preview: $493.33 (assuming the balance is actually reduced on the 15th day and a 30day month). b. Her finance charge would be $7.89 ($493.33 x 0.192/12). c. With new purchases, Talikas balance was $600 for 4 days, $750 for 7 days, $1,050 for 3 days, and $850 for 16 days. This gives an average daily balance of [($600*4)+($750*7)+($1,050*3)+($850*16)] / 30 = $813.33 (assuming a 30day month). d. Her finance charge would be $13.01 ($813.33 x 0.192/12). e. Assuming new purchases are included, the finance charge using the twocycle average daily balance method would be $12.90 ([$800 + $813]/2 x 0.192/12). 2) 4/22 $600.00 balance x 3 days = $ 1,800.00 4/25 + 17.25 $617.25 balance x 2 days = 1,234.50 4/27 + $104.50 $721.75 balance x 5 days = 3,608.75 5/02 15.00 $706.75 balance x 11 days = 7,774.25 5/13 21.00 $685.75 balance x 9 days = 6,171.75 30 days $20,589.25 $20,589.25/30 = $686.31 finance charge = $686.31*(.18/12) = $10.29...
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This note was uploaded on 08/27/2008 for the course FIN 200 taught by Professor Delcorral during the Spring '08 term at Loyola New Orleans.
 Spring '08
 DelCorral
 Personal Finance

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