Calculate the monthly finance charge if the average daily balance is $20, the daily periodic rate is 0.05%, and the number of days in the cycle is 30.

a) 30 cents.

b) 31 cents.

c) 50 cents.

Question

Mathematics

Tanya Terry

7 January, 02:03

Calculate the monthly finance charge if the average daily balance is $20, the daily periodic rate is 0.05%, and the number of days in the cycle is 30.

a) 30 cents.

b) 31 cents.

c) 50 cents.

+2

Answers (1)

Know the Answer?

Lawson Morton · Answer 1

To solve the problem above, we must first find the daily finance charge and multiply it by 30, for the number of days in the month cycle is 30. 0.05% or 0.0005 times $20 is $ 0.01, or 1 cent. Multiply that by 30 to get the monthly finance charge which is, 0.01 x 30 = $ 0.30 or 30 cents. The Answer is A. 30 cents.

Calculate the monthly finance charge if the average daily balance is $20, the daily periodic rate is 0.05%, and the number of days in the cycle is 30.a) 30 cents.b) 31 cents.c) 50 cents.

Calculate the monthly finance charge if the average daily balance is $20, the daily periodic rate is 0.05%, and the number of days in the cycle is 30.

a) 30 cents.

b) 31 cents.

c) 50 cents.