What is the monthly finance charge if the average daily balance is $20, the daily periodic rate is 0.04%, and the number of days in the cycle is 30?

Answer-

The monthly finance charge will be $0.24 or 24 cents.

Solution-

We know that,

As here, daily periodic rate is 0.04%, i.e

Putting the values in the formula,

The monthly finance charge is $0.24.

Step-by-step explanation:

Given : The average daily balance is $20, the daily periodic rate is 0.04%, and the number of days in the cycle is 30.

To find : What is the monthly finance charge?

Solution :

Let the finance charge be x,

The average daily balance is $20,

The daily periodic rate is 0.04%=0.0004,

Number of days = 30

We know that,

Therefore, The monthly finance charge is $0.24.

step-by-step explanation: