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.
$ __________

Question

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. 
$ __________

Quizplus · Accepted Answer

The Answer of 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. 
$ __________

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