Credit Card Discussion

Most of credit card issuers use average daily balance (ADB) to calculate Finance Charge (FC). There are two ways:
1)average daily balance method, including new purchases;
2)average daily balance method, excluding new purchases;
The question is how to calculate the Finance Charge using both ways described above.
Specifications of the Card:
Grace Period(GP) = 0 days.
APR = 18.4%
No of Days in a Billing Cycle (BC)=30

Previous Balance =1051.93$
day1/06-day 16/06 : No activity
day 17/06 : purchase = 257.53$ payment=0
day 18/06-28/06 : No activity
day 29/06 payment=600$
day 30: No activity

According to the bank the charge of credit card for this period is 29.34, but how they arrived to this amount. Thats the question.
Thank you

Tuesday, December 2nd, 2008 at 5:17 pm. Posted in Credit Card. Tags: Adb, Balance Method, Billing Cycle, Credit Card Issuers, New Balance. You can follow this web articles through the RSS 2.0 feed.