Reference no: EM13617325

Calculate the debt limit for the Mitchell family if their financial statement reads as follows:

• total assets, including their home value of $380,000: $478,700
• short-term liabilities: $6,700
• long-term liabilities, including a mortgage balance of $298,000: $320,000

Calculate the average daily balance (ADB) and the finance charge on Drew's account that has 9.5% APR and a 30-day billing cycle. His January statement shows:

• $425.89 balance carried from December
• $133.15 K-Mart charge on January 5
• $76.95 Greek Cuisine restaurant charge on January 8
• $150.00 payment paid on January 10
• $25.25 Texaco gas charge on January 11
• $33.15 Target charge on January 21
• $80.00 health club charge on January 26
• $17.85 Wal-Mart charge on January 28