Question

Harvey has a credit card that uses the previous balance method. The opening

balance of one of his 30-day billing cycles was $2790, but that was his


balance for only the first 6 days of the billing cycle, because he then paid off


his entire balance and didn't make any new purchases. If his credit card's APR


is 21%, which of these expressions could be used to calculate the amount


Harvey was charged in interest for the billing cycle?


O A G3 • 30 (52790)


OB 22:30)(6• 50 + 24 • *2790


oc. 07.30)6* $2799 + 24 =$99


OD. (330)

Answer 1

((0.21 / 365) * 30) * 2790

Step-by-step explanation:

Annual percentage rate = 21%

Opening / beginning balance balance for the month = 2790

Number of days in billing cycle = 30

For the previous balance method :

The interest or finance charge is based on the amount of debt outstanding at the beginning of the previous month :

[(Daily rate * number of days in billing cycle) * beginning balance]

[[(21% ÷ 365) * 30] * 2790]