Eleanor had an average daily balance of $250.82 in her charge

account. She paid 1.7% interest on that amount. Compute her finance
charge.

Finance charge = average daily balance*interest rate

Here
average daily balance = 250.82
interest rate = 1.7% = 0.017
Finance charge = 250.82*0.017 = ?

To compute the finance charge, you need to multiply the average daily balance by the interest rate.

Step 1: Convert the interest rate from a percentage to a decimal.
Interest rate = 1.7% = 1.7/100 = 0.017

Step 2: Multiply the average daily balance by the interest rate.
Finance charge = $250.82 * 0.017 = $4.26

Therefore, Eleanor's finance charge is $4.26.

To compute Eleanor's finance charge, we need to multiply her average daily balance by the interest rate. Let's break down the calculation step by step:

Step 1: Convert the interest rate to a decimal.
The given interest rate is 1.7%. To convert it to a decimal, divide it by 100:
1.7% Ă· 100 = 0.017

Step 2: Multiply the average daily balance by the interest rate.
Eleanor's average daily balance is $250.82. Multiply it by the decimal interest rate computed in step 1:
$250.82 x 0.017 = $4.27

Therefore, Eleanor's finance charge is $4.27.