Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing cycle. Use a 365-day year:
-Month: February (28 days)
Previous month's balance: $ 1250
Interest rate: 22%

A) $ 8.38
B) $ 19.86
C) $ 16.09
D) $ 18.35

Question

Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing cycle. Use a 365-day year:
-Month: February (28 days)
Previous month's balance: $ 1250
Interest rate: 22%

A) $ 8.38 
B) $ 19.86 
C) $ 16.09 
D) $ 18.35

Quizplus · Accepted Answer

The Answer of Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing cycle. Use a 365-day year:
-Month: February (28 days)
Previous month's balance: $ 1250
Interest rate: 22%

A) $ 8.38 
B) $ 19.86 
C) $ 16.09 
D) $ 18.35

Use the Average Daily Balance Method to Compute the Amount