Final answer:
After calculating the interest for the period before and after the payment made on the 14th day, the closest monthly interest amount to the student's answer choices would be $383.01 based on the details provided.
Step-by-step explanation:
The student asked for assistance calculating the interest for the month on a credit card balance with an annual interest rate of 20%, with a principal balance of $25,000, after a payment of $3,000 was made on the 14th day of the month. To solve this, we'll need to divide the annual interest rate by the number of days in a year to find the daily interest rate, then calculate the interest for each period (before and after the payment).
Step-by-Step Calculation
1. Find the daily interest rate: 20% annual rate / 365 days = 0.0548% per day.
2. Calculate interest for the first 14 days: 0.0548% of $25,000 = $13.70 per day, for 14 days = $191.80.
3. Calculate the new balance after payment: $25,000 - $3,000 = $22,000.
4. Calculate interest for the remaining 16 days: 0.0548% of $22,000 = $12.06 per day, for 16 days = $192.96.
5. Add up the interest for the entire month: $191.80 + $192.96 = $384.76.
However, none of the provided options precisely matches this calculation. It's possible that a grace period, days in the month, or compounding frequency could have affected the student's answer choices, but given the information provided, the closest correct option to our calculation would be $383.01 (option b).