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13 August, 00:24

Jackson and kate jones do not pay their credit care in full, the average daily balance is $$875 and the monthly periodic rate is 2.25%, what should be the fiance charge on the statement?

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  1. 13 August, 02:18
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    The finance charge is $19.68

    Step-by-step explanation:

    The finance charge on a credit card is given by the formula:

    Finance Charge = The Average Daily Balance x Monthly Periodic Rate

    We know that:

    Average Daily Balance = $875

    Monthly Periodic Rate = 2.25% = 0.0225

    Using in Formula:

    Finance Charge = $875 x 0.0225

    Finance Charge = $19.68
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