Question

Compute the finance charge, at 3% for one month on average daily balance of $268.42

Answer 1

Finance charge = average daily balance * interest rate * time period

Given:

average daily balance of $268.42 ​

interest = 3% = 0.03

Time period = 1 month

so,

Finance charge = 268.42 * 0.03 * 1 = $8.0526

so, the answer is option B) $8.05