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The balance on a credit card, that charges a 20%
APR interest rate, over a 1 month period is given in
the following table:
Days 1-3: $150 (initial balance)
Days 4-20: $200 ($50 purchase)
Days 21-30: $50 ($150 payment)
What is the finance charge, on the average daily
balance, for this card over this 1 month period?
finance charge = $ [?]
Round to the nearest hundredth.
Plz help

The balance on a credit card that charges a 20 APR interest rate over a 1 month period is given in the following table Days 13 150 initial balance Days 420 200 class=

Respuesta :

anthougo

The finance charge for this credit card over a month is $2.38.

Data and Calculations:

APR interest rate = 20%

Period          Credit Card Balance           Finance Charge

Days 1-3:        $150 (initial balance)         $0.25 ($150 x 20% x 3/365)

Days 4-20:   $200 ($50 purchase)          $1.86 ($200 x 20% x 17/365)

Days 21-30:    $50 ($150 payment)         $0.27 ($50 x 20% x 10/365)

Total Finance Charge for the month =  $2.38

Thus, the finance charge on the average daily balance for this credit card over a month is $2.38.

Learn more about the finance charge on the average daily balance of a credit card here: https://brainly.com/question/4403314

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