Average Daily Balance

Brian bought a $2,100 computer on an installment plan.  He made a $400 down payment, and he has to make monthly payments of $79.50 for the next two years.  How much interest will she pay?

Answer explanation

To calculate interest:

a) Payment amount=(# of months)(monthly payments)

b) Total amount = payment amount + monthly payments.

c) Interest = total amount - principal

Anthony borrowed $26,000 for a car for 5 years at an APR of 5.25%. What will his monthly payment be?

Assume a 31−day month to calculate your average daily balance for your credit card bill. Your daily balance for the first 10 days was​ $1,400, for the next 10 days was​ $1900, and for the last 10 days was​ $2700. What will your average daily balance be at the end of the​ month?

Tags

CCSS.7.NS.A.3

Assuming the APR on your credit card is​ 18% and your average daily balance this month was​ $10,000, what will your interest or finance charges for the month​ be? Use monthly periodic rate.

Tags

CCSS.7.RP.A.3

Brenda just received her June FlashCard bill. She did not pay her May bill in full, so his June bill shows a previous balance and a finance charge. The average daily balance is $470, and the monthly periodic rate is 1.5%. What should Brenda’s finance charge be?

Tags

CCSS.7.RP.A.3

If the sum of the daily balances of a credit card totals $3,865.50 over 30 days, what is the average daily balance?

Tags

CCSS.6.NS.B.3

If Luna paid $825.80 on a $3,169.78 credit card balance, what is the new balance?

Tags

CCSS.6.NS.B.3