Answer to Question #142572 in Financial Math for Kornelia Wilk

Question

The average daily balance for david’s last credit card statement was $1,166.03, and he had to pay a finance charge. The APR is 20.4%.

what is the finance charge for the month? round to the penny.

Answer 1

$APR=20.4\%$

The monthly interest is $\frac{20.4 \%}{12}= 1.7\%$

A finance charge will be

$\$1,166.03\times1.7\%= \$19.82\approx \$20$