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April 16, 2014

April 16, 2014

Posted by **AR** on Thursday, January 7, 2010 at 9:39am.

for the first 11 days of April was $225. His daily balance for

the next 6 days was $262.22. For the last 14 days it was $297.33.

What was his finance charge if the store used a rate of 2%?

- math -
**drwls**, Thursday, January 7, 2010 at 10:24amI do not know of any store that computes finance charges on an average daily balance basis. It is usually based upon the unpaid balance at the end of the month. You don't say whether the 2% is a daily or monthly rate.

They probably want you to take 2% of the average balance for the month. That average balance is

(11/30*225) + (6/30*262.22) + (14/30*297.33) = 272.60

2% of that is $5.45

- math -
**marli**, Thursday, January 7, 2010 at 10:56amwhat is -90 + 5

- math (marli) -
**drwls**, Thursday, January 7, 2010 at 11:49amPost your questions separately, not on someone else's question thread.

Do this by clicking on "Post a New Question"

Add five to -90. You will get a less negative number.

- math -
**ella**, Friday, August 10, 2012 at 10:56pmCalculate the monthly finance charge for the following credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. (Round your answer to the nearest cent.)

$3,000 balance, 21% rate, $150 payment, average daily balance method

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