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    Calculate the monthly finance charge for credit card

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    Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.)

    $500 balance, 16%, $50 payment
    (a) previous balance method
    $

    (b) adjusted balance method
    $

    (c) average daily balance method
    $

    © BrainMass Inc. brainmass.com October 10, 2019, 6:42 am ad1c9bdddf
    https://brainmass.com/math/fractions-and-percentages/calculate-the-monthly-finance-charge-for-credit-card-553324

    Solution Preview

    (a) previous balance method
    Since the annual rate is 16%, the monthly rate is 16%/12=4/300
    Hence, using previous balance method, financial ...

    Solution Summary

    The solution gives detailed steps on computing the monthly finance charge for the credit card transaction using 3 methods. All formula and calcuations are shown and explained.

    $2.19