Solve the Problem The Interest Rate on the Card Is 1

question 205

Multiple Choice

Solve the problem.
-On the November 6 billing date, Terry had a balance due of $455.76 on his credit card. The Transactions during the following month were: $$\begin{array} { l l r } \text { November } 8 & \text { Charge: tools } & \$ 51.46 \\\text { November } 9 & \text { Payment } & \$ 68.83 \\\text { November } 13 & \text { Charge: car repair } & \$ 232.85 \\\text { December } 3 & \text { Charge: internet charge } & \$ 30.26\end{array}$$
The interest rate on the card is 1.6% per month. Using the average daily balance method, find the Balance due on December 6 (November has 30 days) .

• A) $711.47
• B) $465.73
• C) $396.90
• D) $711.51

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, payable over a specific period, typically shown on the income statement.

Income Taxes

Taxes levied by a government directly on income, both earned (salaries, wages) and unearned (dividends, interest).

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a certain period of time, indicating the efficiency of inventory management.

Cost Of Goods Sold

The immediate expenses related to manufacturing products sold by a business, which encompass both materials and labor.