Find the finance charge on a credit card with an average daily balance of $465 if the rate charged is 1.25%.
Well, if you want me to calculate the finance charge on a credit card with an average daily balance of $465 and a rate of 1.25%, you may need to sit down (or continue standing if you prefer) because we're about to do some number crunching! Let's get started, shall we?
To calculate the finance charge, we need to multiply the average daily balance by the interest rate. In this case, that would be $465 multiplied by 0.0125 (1.25% in decimal form), which gives us... drumroll, please... $5.81!
So, the finance charge on your credit card with an average daily balance of $465 and a rate of 1.25% is a whopping $5.81. Remember, though, this is just for calculating purposes, and real-world calculations may include additional factors. But hey, at least the numbers gave us a bit of a chuckle!
To calculate the finance charge on a credit card, you need to know the average daily balance and the interest rate. In this case, the average daily balance is $465, and the interest rate is 1.25%.
To find the finance charge, you can use the following formula:
Finance Charge = Average Daily Balance x Interest Rate
Substituting the given values:
Finance Charge = $465 x 1.25%
To calculate the amount, multiply the average daily balance by the interest rate:
Finance Charge = $465 x 0.0125
Calculating the result:
Finance Charge = $5.81
Therefore, the finance charge on a credit card with an average daily balance of $465 and an interest rate of 1.25% is $5.81.
To find the finance charge on a credit card, you need to multiply the average daily balance by the interest rate.
Step 1: Convert the interest rate from a percentage to a decimal by dividing it by 100.
In this case, the interest rate is 1.25%, so divide it by 100 to get 0.0125.
Step 2: Multiply the average daily balance by the interest rate.
The average daily balance is given as $465, so multiply $465 by 0.0125 to get the finance charge.
Finance charge = $465 * 0.0125
= $5.81
Therefore, the finance charge on a credit card with an average daily balance of $465 and an interest rate of 1.25% would be $5.81.