Question

Joe: Good credit score - 12% APR

Hunter: Bad credit score - 22% APR
f each of them carry an average daily balance of $1,100 for a specific month, and they
both had to pay a finance charge, how much more would Hunter have to pay on the
finance charge than Joe? (**Don't forget to use the monthly APR when doing your
calculations**)
Type your answer in the boxes
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LA

Answer 1

To calculate the finance charge, multiply the average daily balance by the monthly APR and divide by the number of days in the month.

Step-by-step explanation:

To calculate the finance charge, we need to multiply the average daily balance by the monthly APR and divide it by the number of days in the month. For Joe, his finance charge would be ($1,100 x 0.12) / 30 = $4.40. For Hunter, his finance charge would be ($1,100 x 0.22) / 30 = $8.26. Therefore, Hunter would have to pay $3.86 more than Joe on the finance charge.

Learn more about Calculating finance charge on different credit scores