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What is the monthly finance charge if the average daily balance is $15 the daily periodic rate is .06% in a number of days in the cycle is 30?

User DJ Poland
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1 Answer

26 votes
26 votes

$0.27

The average daily balance is $15

The daily periodic rate = 0.06%

The number of days in the cycle is 30

Find out the monthly finance charge.

To proof

Let us assume that the monthly finance charge = x

As given in the question

The average daily balance = $15

daily periodic rate = 0.06%,

First convert 0.06% in decimal form

= 0.0006

Daily finance charge = 0.0006 × 15

= 0.009

number of days in the cycle is 30

now

monthly finance charge

Than the equation becomes

x = 15 × 0.0006 × 30

x = 0.009× 30

x = $0.27

Thus the monthly finance charge is $0.27

User Northtree
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2.6k points