Question

Larry did not pay off his credit card bill in full, so his February bill has a finance charge added on. The average daily balance is $4,530.34 and the monthly periodic rate is 2.5%What should his finance charge be on the February statement ?

Answer 1

To calculate Larry's finance charge on his February statement, we need to multiply the average daily balance by the monthly periodic rate.

Larry's average daily balance is $4,530.34 and the monthly periodic rate is 2.5%.

First, let's convert the monthly periodic rate to a decimal by dividing it by 100:
2.5% = 0.025

Next, we can calculate the finance charge by multiplying the average daily balance by the monthly periodic rate:
Finance charge = $4,530.34 * 0.025

Finance charge = $113.26

So, Larry's finance charge on his February statement should be $113.26. If you have any more questions or need further assistance, feel free to ask!