Suppose you have a credit card with an 12% annual interest rate, and the statement balance for the month is $4,800. Suppose also that you have already computed the average daily balance to be $4,944.
Find the interest charges for the month. Round to the nearest cent.
$
49.44
Correct
Find the amount due for your next bill. Round to the nearest cent.
$
4,944.00 * 0.12 = 593.28
593.28 / 12 = 49.44
The interest charges for the month are $49.44.
To find the amount due for the next bill, you would add the statement balance of $4,800 to the interest charges of $49.44.
4,800 + 49.44 = $4,849.44
The amount due for the next bill is $4,849.44.