Question

The average daily balance of a credit card for the month of November was $700, and the unpaid balance at the end of the month was $1,400. If the monthly interest rate is 1.3% of the average daily balance, what is the total balance on the next billing date December 1? Round your answer to the nearest cent.

Answer 1

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Explanation:

Answer 2

Answer:3255.20

Explanation:

First, calculate the interest using the APR in decimal form (divided by 12) and the average daily balance.

Interest =0.27612×$2,400=$55.20

Then add the interest to the unpaid balance.

Total Balance =$3,200+$55.20=$3,255.20