Hannah has a credit card with an APR of 11.90% and a billing cycle of 30 days. The following table shows Hannah’s transactions in the month of April. DateAmount ($)Transaction4/1322.95Beginning balance4/1019.87Purchase4/1450.00Payment4/1971.21PurchaseIf Hannah’s credit card company calculates finance charges using the daily balance method, what will her April finance charge be?

The daily balances are $322.95 for 9 days, $342.82 for 4 days after the purchase, $292.82 for 5 days after the payment, and $364.03 for 12 days after the second purchase. Multiply each balance by its number of days and add: $322.95(9) + $342.82(4) + $292.82(5) + $364.03(12) = $10,110.29 in balance-days. The daily rate is 0.119 ÷ 365, so the finance charge is $10,110.29 × (0.119 ÷ 365) ≈ $3.30, choice C.

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