Question

Jace didn't pay his previous month's credit card bill in full. This month's bill shows a finance charge of $35.13. Jeremy calculates the average daily
balance in the new bill to be $2,342.15. What is the monthly percentage rate on the card?
A. 1.5%
B. 1.82%
C. 14.9%
D. 18.08%

Answer 1

Answer:

The correct answer is A. 1.5%

Step-by-step explanation:

Let's check the information given in the question:

Finance charge this month's bill = US$ 35.13

Balance in the new bill = US$ 2,342.15

For finding the monthly percentage rate on the card, we do this operation:

Monthly percentage = Finance charge / Balance in the new bill

Monthly percentage = 35.13 / 2,342.15

Monthly percentage = 0.015 (Rounding to three decimals)

Monthly percentage = 0.015 * 100 = 1.5%

The correct answer is A. 1.5%. That's the monthly percentage rate on the card.