Final answer:
The monthly finance charge for an average daily balance of $30 with a daily periodic rate of 0.07% and a 30-day cycle is $0.63.
Step-by-step explanation:
To calculate the monthly finance charge when the average daily balance is $30, the daily periodic rate is 0.07%, and the number of days in the cycle is 30, we use the formula for finance charge calculation:
Finance Charge = Average Daily Balance × Daily Periodic Rate × Number of Days in the Cycle
Substituting the given values:
Finance Charge = $30 × 0.0007 × 30
Finance Charge = $0.63
Therefore, the monthly finance charge is $0.63, which corresponds to option A.