Question

The balance on a credit card, that charges a

28. 5% APR interest rate, over a 1 month

period has a daily balance of $145. What is

the finance charge, on the average daily

balance, for this 1 month period?

28. 5% = 0. 285

Hint: Divide the decimal by 12 to get the monthly interest

rate. Do not round that answer. Take that answer and

multiply it to the average daily balance.

Finance charge = $[?]

Round to the nearest hundredth.

Answer

Enter

Answer 1

Explanation:

This APR assumes no compounding ( as I believe it would include in Europe)...this makes it much simpler to answer this Q:

28.5 / `12 = 2.375 % per month

2.735% of 145 = $ 3.44 finance charge