Question

Clement had an average daily balance of $318.47 in his charge account.He paid 1.64% interest on that amount. Compute his finance charge.a. $46.62b. $ 5.22c. $315.46d. $.16

Answer 1

To find a percentage P out of a quantity Q, we use the formula:

$Q\cdot\frac{P}{100}$

In this case, the quantity is $318.47 and the Percentage is 1.64%, then:

$318.47\cdot\frac{1.64}{100}=318.47\cdot0.0164=5.222908$

Then the correct answer is option b.$ 5.22