Final answer:
To compute the finance charge, multiply the average daily balance by the monthly rate. In this case, the finance charge is $10.25.
Step-by-step explanation:
To compute the finance charge, you need to multiply the average daily balance by the monthly rate. In this case, the average daily balance is $341.75 and the monthly rate is 0.03. So the finance charge is calculated as:
Finance Charge = Average Daily Balance x Monthly Rate
= $341.75 x 0.03
= $10.25
Therefore, the finance charge is $10.25.