Jerry's Bank charges 1.2% per month on the average daily balance as well as the following special fees.
Cash advance fee: 2.5% {minimum of $2 and maximum of $10}
Late payment fee: $30
Over the credit limit fee: $35
One month Jerry was on vacation and did not get his account payment in on time and also went
Over the credit limit. He also used his card for 7 $150 cash advances. His average daily balance was
$3200 for the month. Find the special fees which will be added to his account balance next month.

Question

Quizplus · Accepted Answer

The special fees include the late payment fee, the over the credit limit fee, and the cash advance fees. The late payment fee is $30, and the over the credit limit fee is $35. For the cash advances, since each is $150 and the cash advance fee is 2.5% (with a minimum of $2 and a maximum of $10), each cash advance fee would be $3.75 ($150 * 2.5% = $3.75, which is within the minimum and maximum range). With 7 cash advances, the total cash advance fee would be $3.75 * 7 = $26.25. Adding all these fees together: $30 (late payment) + $35 (over the limit) + $26.25 (cash advances) = $91.25.

Jerry's Bank Charges 1