Scribd
Upload
65 views3 pages

Consumer Credit June 2019

The credit card statement shows purchases and payments between March 15 and April 14, 2019. The interest rate is 18% per year and minimum payment is 5% of the balance. The average daily balance is calculated as RM5,792.26. Based on this, the interest charge is RM86.88. The total outstanding balance is RM5,906.88. The minimum payment is RM295.34, leaving an outstanding balance of RM5,611.54 after the minimum payment is made.

Uploaded by

Natasya Jescorin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
65 views3 pages

Consumer Credit June 2019

The credit card statement shows purchases and payments between March 15 and April 14, 2019. The interest rate is 18% per year and minimum payment is 5% of the balance. The average daily balance is calculated as RM5,792.26. Based on this, the interest charge is RM86.88. The total outstanding balance is RM5,906.88. The minimum payment is RM295.34, leaving an outstanding balance of RM5,611.54 after the minimum payment is made.

Uploaded by

Natasya Jescorin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 3

You have received your credit card statement for the period beginning 15 March to 14

April 2019. The interest rate charged by Nat East Bank is 18 percent per annum and the
monthly minimum payment is 5 percent. You want to verify the monthly finance charges
and the details of the statement are stated below.

Date Items RM
Mar-15 Previous Balance 5300
Mar-17 Purchase shoes at Zalora online store 250
Mar-20 Petron Gebeng 130
Apr-08 Payment (Internet Banking) 600
Apr-08 Purchase clothes at Fashion Valet online store 690
Apr-08 MAS return tiket to Langkawi 340
Apr-10 Purchase printer at Harvey Norman store 300
Apr-11 Shell Batu Burok 150
Apr-13 Purchase Midea Vacuum at Lazada online store 260
Apr-14 Payment (Internet Banking) 1000

Compute the following, using average daily balance, including new purchases
i) Average Daily Balance
ii) Interest Charge
iii) Outstanding balance
iv) Minimum Payment
v) Outstanding balance after minimum payment
Average daily balance method

A B C D = B*C
Period No of days Balance Aggregate Balance
15/3 - 16/3 2 5,300 10,600.00
17/3 - 19/3 3 5,550 16,650.00
20/3 - 7/4 19 5,680 107,920.00
8/4 - 9/4 2 6,110 12,220.00
10/4 - 10/4 1 6,410 6,410.00
11/4 - 12/4 2 6,560 13,120.00
13/4 - 13/4 1 6,820 6,820.00
14/4 - 14/4 1 5,820 5,820.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
31 179,560.00

Average daily balance = Total aggregate balance


No. of days in the month

= 179,560
31

= 5,792.26

Compute interest charge = Monthly interest rate x average daily balan


= 1.50% x 5,792.26
= 86.88

Total outstanding bal for the month = Ending balance + Interest charge
= 5,820 + 86.88
= 5,906.88

Minimum payment = % of Minimum payment x Total outstandin


= 5% x 5,906.88
= 295.34

Outstanding balance = Total outstanding bal for the month - minim


after minimum payment = 5,906.88 - 295.34
= 5,611.54
monthly interest rate = 18% / 12 bln = 1.5%

ate balance
n the month

rest rate x average daily balance

nce + Interest charge

m payment x Total outstanding balance

nding bal for the month - minimum payment

You might also like