1. How long will it take Kate to pay for the same purchase if the minimum payment is changed to 3% of the outstanding balance of $3,750 but the interest rate is raised to 23%? How much interest will she pay in total?
2. Calculate the average daily balance (ADB) and the finance charge on Drew's account that has 9.5% APR and a 30-day billing cycle. His January statemen.
$425.89 balance carried from December
$133.15 K-Mart charge on January 5
$76.95 Greek Cuisine restaurant charge on January 8
$150.00 payment paid on January 10
$25.25 Texaco gas charge on January 11
$33 15 Target charge on January 21
$80.00 health club charge on January 26
$17.85 Wal-Mart charge on January 28