$597.60
He pays $696.50 interest.
696.50 (A+)
Average daily balance method
The average interest rate on this type of card is about 14 percent. This of course varies by indivdual financial situation.
Use this simple formula: I=Average daily balance times the interest rate, divided by 366 times 30 days in November.
He pays $696.50 interest.
Interest due = 24.9% of 1800 = 1800*24.9/100 = 448.20
Interest income would be a credit entry, as it increases a form of revenue. If the interest income is received in cash, the entry would be: Dr Cash Cr Interest income If the income was not yet received but will be at a later date, the entry would be: Dr Interest receivable Cr Interest income In either case, the Interest income account would be credited.
696.50 (A+)
Average daily balance method
Average Balance account
Accrued interest which is to be received within 12 months is a current asset.
Estimated Energy Requirement
The average interest rate on this type of card is about 14 percent. This of course varies by indivdual financial situation.
It maintains balance or equilibrium.
Use this simple formula: I=Average daily balance times the interest rate, divided by 366 times 30 days in November.
Each month the bank calculates your average daily balance times the interest rate. Seeing that each month you will gain money from interest being paid out, your average daily balance will be higher. The more money to calculate the interest rate against, the higher the payout.