Respuesta :
ANSWER:
Amount terry was charged in interest for the billing cycle is $ 4.9 approximately.
SOLUTION:
Given, Terry has a credit card that uses the average daily balance method for the first 18 days of one of his billing cycles, his balance was $350, and for the last 12 days of the billing cycle, his balance was $520.
His credit cards APR is 14%
Using the average daily balance method, the amount to be used in calculating Theresa's interest is given by:
[tex]\frac{\text { sum of product of number of days in bulling cycle and balance. }}{\text { moter }}=\frac{18 \times 350+12 \times 520}{18+12}\\\\=\frac{12540}{30}=418[/tex]
Therefore, the interest charge on Theresa for the biling cycle is given by:
[tex]\frac{\text {amount } \times A P R}{12 \text { months }}=\frac{418 \times 0.14}{12}=4.877[/tex]
hence, amount terry was charged in interest for the billing cycle is $ 4.9 approximately.
Answer:
{0.14/365 • 30}{18 • $350 + 12 • $520/ 30}
Step-by-step explanation:
