Question

If adam’s credit card has an apr of 14.63%, what is adam’s balance at the end of june? a. $629.42 b. $629.66 c. $627.27 d. $628.40

Answer 1

The balance in Adam's account at the end of June which has the credit card with an apr of 14.63% is $627.27.

What is monthly payment?

Monthly payment is the payment which has to paid against the loan amount or the borrowed money calculated with interest rate.

The Adam’s credit card has an Apr of 14.63%,The table below shows his use of that credit card over three months.

• Date  Amount ($)  Transaction                       Remaining Balance ($)  
• 4/1      626.45         Beginning balance             626.45
• 4/10    37.41            Purchase                              663.86
• 4/12    44.50           Purchase                              708.36
• 5/3     65.50           Payment                               642.86
• 5/16    24.89          Purchase                               667.75
• 5/20   104.77         Payment                                 562.98
• 6/6      23.60         Payment                                 539.38
• 6/10    15.00           Purchase                                554.38
• 6/14     51.85           Purchase                               606.23

For the purchase add the previous balance and for payment subtract the previous balance. I have mentioned another column for remaining balance in the above table.

The total of this transaction when multiplied with number of days, we get the total balance, 56498.48.

Now the monthly average balance is,

$m=\dfrac{56498.48}{90}\\m=627.76$

Thus, the balance in Adam's account at the end of June which has the credit card with an Apr of 14.63% is near to $627.27.

Learn more about the monthly payment here;

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Answer 2

Adam’s balance at the end of June is $629.42.

What is the adjusted balance method?

The adjusted balance method is an accounting method that bases finance charges on the amount(s) owed at the end of the current billing cycle after credits and payments post to the account.

Balance at the end of April = 626.45 + 37.41 + 44.50 = $708.36

Interest levied on $708.36= 708.36* (14.63/12) * 1/100

Interest levied on $708.36 = $8.64

So, balance on May 1st= 708.36+ 8.64 = $717

Balance at the end of May = 717-65.50+24.89-104.77 = $571.62

Interest levied on $571.62 = $571.62 * (14.63/12) * 1/100

Interest levied on  $571.62=$6.97

So, balance on June 1st = $578.59

Balance at the end of June = 578.59-23.60 + 15+51.85 = $621.84

Interest levied on $621.84 = $621.84* (14.63/12) * 1/100

Interest levied on $621.84 =$ 7.58

So balance at the end of the june = 621.84 + 7.58 = $629.42

Therefore, Adam’s balance at the end of June is $629.42.

To get more about the adjusted balance method visit:

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