Calculate the monthly finance charge based on the following dаta: Average daily balance = $40.00 Daily periodic rate = 0.06% (state as a decimal) Days in cycle = 25

Question

Mathematics

Osvaldo Dunn

3 August, 17:03

Calculate the monthly finance charge based on the following dаta: Average daily balance = $40.00 Daily periodic rate = 0.06% (state as a decimal) Days in cycle = 25

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Sebastian Harrington · Answer 1

The monthly finance charge would be $0.60.

This is calculated by multiplying the daily balance by the daily rate (as a decimal) and then multiplying by the number of days in the billing cycle.

0.06%=0.06/100 = 0.0006

40 (0.0006) (25) = 0.6 or $0.60.