A credit card has a balance of \$800 on June 1 st . A payment of \$400 is made on June 4 th . A charge of \$120 is made on June 13 th , and another charge of \$100 is made on June 26 th . Note that June is a 30-day month.

(A) Calculate the average daily balance for this card, with July 1 st as the date interest is charged.

Date

Transaction amount

Balance

Number of days

June 1

800

June 4

June 13

June 26

July 1

(B) Find the interest charged for June on July 1 st , using an annual interest rate of 18%. Also, find the new balance for this card as of July 1 st with interest added on.

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