A credit card has an APR of 24% and an average daily balance of $800 during a 28 -day billing cycle. What is the finance charge for this period? Finance Charge=(Average Daily Balance)⋅((APR)/(365))⋅(Number of Days in Billing Cycle)
Answer
A
14 point 7 3 dollars
B
28 point 5 3 dollars
C
1 dollars comma 472 point 8 8
D
147 point 2 9 dollars
Explanation
Substitute the values into the formula: $800 × (0.24 ÷ 365) × 28 = $14.7288. Rounded to the nearest cent, the finance charge is $14.73, which is choice A.
AI-written and checked against the verified answer.