Exercises 3-4 involve credit cards that calculate interest using the average
daily balance method. The monthly interest rate is \(1.2 \%\) of the average
daily balance. Each exercise shows transactions that occurred during the June
1-June 30 billing period. In each exercise,
a. Find the average daily balance for the billing period. Round to the nearest
cent.
b. Find the interest to be paid on July 1 , the next billing date. Round to
the nearest cent.
c. Find the balance due on July 1 .
d. This credit card requires a \(\$ 30\) minimum monthly payment if the balance
due at the end of the billing period is less than \(\$ 400\). Otherwise, the
minimum monthly payment is \(\frac{1}{25}\) of the balance due at the end of the
billing period, rounded up to the nearest whole dollar. What is the minimum
monthly payment due by July 9?
$$
\begin{array}{|l|c|}
\hline \text { Transaction Description } & \text { Transaction Amount } \\
\hline \text { Previous balance, } \$ 4037.93 & \\
\hline \text { June } 1 \quad \text { Billing date } & \\
\hline \text { June } 5 \quad \text { Payment } & \$ 350.00 \text { credit }
\\\
\hline \text { June } 10 \text { Charge: Gas } & \$ 31.17 \\
\hline \text { June } 15 \text { Charge: Prescriptions } & \$ 42.50 \\
\hline \text { June } 22 \text { Charge: Gas } & \$ 43.86 \\
\hline \text { Charge: Groceries } & \$ 112.91 \\
\hline \text { June } 29 \text { Charge: Clothing } & \$ 96.73 \\
\hline \text { June } 30 \text { End of billing period } & \\
\hline \text { Payment Due Date: July } 9 & \\
\hline
\end{array}
$$
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