normahernandez
Answered

Calculate the monthly finance charge if the average daily balance is $20, the daily periodic rate is 0.05%, and the number of days in the cycle is 30.

A30 cents.
B31 cents.
C50 cents.

Verified Answer :

metchelle

To solve the problem above, we must first find the daily finance charge and multiply it by 30, for the number of days in the month cycle is 30. 0.05% or 0.0005 times $20 is $ 0.01, or 1 cent. Multiply that by 30 to get the monthly finance charge which is, 0.01 x 30 = $ 0.30 or 30 cents. The Answer is A. 30 cents.

Answer:

30 cents

Step-by-step explanation:

To calculate the remaining balance we must calculate how much money must be paid per day. We can determine this using the average daily rate of 0.05% and the daily balance. Then we can multiply this with the amount of days in the cycle.

\(=20*0.0005*30=0.3\)

Therefore the monthly finance charge is 30 cents

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