Marsha Must Have Surgery and She Does Not Have the $15,000

question 89

Short Answer

Marsha must have surgery and she does not have the $15,000 cash necessary for the operation. Talking to an administrator at the hospital, she finds that it will accept MasterCard, VISA, and Discover credit cards. All of these credit cards have an APR of 18%, so she figures that it does not matter which card she uses, even though she plans to take a year to pay off the loan.
Assume that Marsha makes a payment of $900 and then receives a bill. Show the interest from credit cards of 18% APR according to the previous balance, adjusted balance, and average daily balance methods. Assume that the month has 31 days and that it takes 14 days for Marsha's payment to be mailed and recorded. Round your answers to the nearest cent.
Previous balance method.
$ __________
Adjusted balance method.
$ __________
Average daily balance method.
$ __________

---

Definitions:

Work Atmosphere

The environment and culture of a workplace, influenced by relationships, policies, and the physical workspace, which affects employees' motivation and productivity.

Leadership Grid

A model used to help understand different leadership styles based on concern for people and production.

Numeric Coordinates

A set of numbers that designate the position of a point or object within a spatial system.

Very Direct

Pertains to a straightforward and unambiguous manner of communication or action, where intentions or messages are conveyed clearly without evasion or subtlety.