Final answer:
To calculate the finance charge for the next billing cycle on a credit card balance, you need to multiply the average daily balance by the daily periodic rate and the number of days in the billing cycle.
Step-by-step explanation:
To calculate the finance charge for the next billing cycle on a credit card balance, you need to multiply the average daily balance by the daily periodic rate and the number of days in the billing cycle. The average daily balance is calculated by adding up the balances at the end of each day and dividing by the number of days in the billing cycle. The daily periodic rate is calculated by dividing the APR by 365. So, in this case, the finance charge would be:
Average daily balance = $12,445.67
Daily periodic rate = 0.23 / 365
Number of days in the billing cycle = depends on the specific credit card company
Let's assume the billing cycle is 30 days:
Average daily balance * Daily periodic rate * Number of days in the billing cycle = $12,445.67 * (0.23 / 365) * 30 = $18.57
Therefore, the finance charge for the next billing cycle would be $18.57. Please note that the actual finance charge may vary depending on the specific terms and conditions of your credit card.