A credit card's billing cycle is 25 days and the average daily balance is $1,500 with an APR of 15%. What is the finance charge for the credit card?

Use the daily periodic rate, which is the APR divided by 365: 0.15 ÷ 365. Multiply that rate by the average daily balance and the 25-day billing cycle: $1,500 × 0.15 × 25 ÷ 365 ≈ $15.41. The finance charge is $15.41, choice D.

AI-written and checked against the verified answer.