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.


Date: 9/1 Amount: $716.54 Transaction: Beginning Balance

Date: 9/7 Amount $84.94 Transaction: Purchase

Date: 9/12 Amount: $15.69 Transaction: Purchase

Date: 9/20 Amount: $200.00 Transaction: Payment



What will Calvin’s starting balance be next month?

a.

$617.17

b.

$624.74

c.

$625.91

d.

$623.52

THE ANSWER: C. $625.91