Calvin’s credit card computes finance charges using the daily balance method. His card has a billing cycle of 30 days and an APR of 14.75%. The following table details Calvin’s transactions in the month of September.DateAmount ($)Transaction9/1716.54Beginning balance9/784.94Purchase9/1215.69Purchase9/20200.00PaymentWhat will Calvin’s starting balance be next month?

The daily balances are $716.54 for 6 days, $801.48 for 5 days, $817.17 for 8 days, and $617.17 for 11 days after the $200 payment. Their total across the 30 days is 6($716.54) + 5($801.48) + 8($817.17) + 11($617.17) = $21,632.87. Multiply by the daily rate, 14.75% ÷ 365, to get a finance charge of about $8.74. Adding that to the final balance of $617.17 gives $625.91, choice C.

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