Question

Henry Garrison starts the month with a balance on his credit card of $1,000. The average daily balance for the month including purchase is $883. The average daily balance for the month excluding new purchase is $750. The bank charges 1.5 percent per month and uses the average daily balance including new purchases method. What would Henry's finance charges be for the month?

Answer 1

Answer:

The correct answer is $13.245.

Explanation:

The balance for the credit card is $1000.

The average daily balance for the month including purchase is $883.

The average daily balance for the month excluding new purchase is $750.

The bank charges 1.5% per month using average daily balance including new purchases method.

The finance charges for the month will be

=$883\ \times\ 0.015$

=$13.245

So, the finance charges for the month will be $13.245.