Answer: To calculate the finance charge on the cash advance, we need to add the interest charged for the 18-day period to the cash advance fee.
First, let's calculate the interest charged. We can use the formula:
interest = principal * rate * time
where principal is the amount borrowed, rate is the daily periodic interest rate, and time is the number of days.
In this case, the principal is $225, the rate is 0.054% per day (expressed as a decimal, this is 0.00054), and the time is 18 days. So, we have:
interest = $225 * 0.00054 * 18 = $2.17
Therefore, the interest charged on the cash advance is $2.17.
Next, we need to add the cash advance fee of $12:
finance charge = $2.17 + $12 = $14.17
Therefore, the total finance charge on the cash advance is $14.17.
Explanation: