Sam has an account with a department store. His daily balance
for the first 12 days of April was $125.47. His daily balance for
the next 5 days was $151.25. For the last 13 days it was $177.63.
What was his finance charge if the store used a rate of 2%?
First, we need to calculate the average daily balance for the entire month of April. We can do this by multiplying the number of days in each period by the daily balance, adding up the results, and then dividing by the total number of days in April:
(12 days * $125.47) + (5 days * $151.25) + (13 days * $177.63) = $3,398.70
$3,398.70 / 30 days = $113.29 (rounded to the nearest cent)
Now we can calculate the finance charge using the average daily balance and the given interest rate of 2%. To do this, we'll multiply the average daily balance by the interest rate and then multiply that result by the number of days in April:
$113.29 * 0.02 * 30 days = $67.97
So Sam's finance charge for the month of April was $67.97.