Calvin’s credit card computes finance charges using the daily balance method. His card has a billing cycle of 30 days and an APR of 14.75%. The following table details Calvin’s transactions in the month of September.
Date: 9/1 Amount: $716.54 Transaction: Beginning Balance
Date: 9/7 Amount $84.94 Transaction: Purchase
Date: 9/12 Amount: $15.69 Transaction: Purchase
Date: 9/20 Amount: $200.00 Transaction: Payment
What will Calvin’s starting balance be next month?
a.
$617.17
b.
$624.74
c.
$625.91
d.
$623.52
THE ANSWER: C. $625.91
