Question

Jasmine had an average daily balance of $1,608.24 for the last billing cycle, which had 31 days. If her credit cards charges an APR of 22.99%, what would her finance charges be for the last billing cycle?

Answer 1

Finance per billing cycle = $ 30.91

Explanation:

First, we will calculate the APR for 1 day:

APR per day = (22.99%/year)(1 year/12 month)(1 month/31 days)

APR per day = 0.062 % / day

Now, we will calculate the finance per day:

Finance per day = (Daily Balance)(APR per day) = ($ 1608.24)(0.062 %/day)

Finance per day = $0.99/day

Now, we will calculate the finance for one billing cycle:

Finance per billing cycle = (Finance per day)(31 days) = ($ 0.99/ day)(31 days)

Finance per billing cycle = $ 30.91