# Cody Lind's most recent credit card statement follows. His finance charge is 18% APR. Calculate...

## Question:

Cody Lind's most recent credit card statement follows. His finance charge is 18% APR. Calculate Cody's average daily balance, finance charge, and new balance. (Round your final answers to the nearest cent.)

 30-day billing cycle 9/2 Billing date $1,200 previous balance 9/7 Payment$100 cr. 9/13 Charge: Kohl? s $350 9/17 Payment$200 cr. 9/28 Charge: WalMart $50 Average daily balance$ Finance charge $New balance$

## Credit Card:

A credit card would allow the cardholder to use up to the credit limit for purchases. It is a type of revolving account, which the cardholder can pay off debt my several payments.

Calculate the average daily balance:

{eq}Average\:Daily\:Balace=\displaystyle\frac{\$1,200\times 5 + (\$1,200-\$100)\times 6+ (\$1,100 +\$350)\times 4 +(\$1,450 - \$200)\times 11 + \$1,300\times 4}{30} = $1,245 {/eq} Calculate the finance charge: Assume that there is 365 days in year. {eq}Finance\:Charge = \displaystyle$1,245\times 18\%\times\frac{30}{365} = $18.42{/eq} Calculate the new balance: {eq}New\:Balance =$1,300 + $18.42 =$1,318.42 {/eq} 