Assuming the APR on your credit card is 18% and your average daily balance this month was $10,000,what will your interest or finance charges for the month be?
A)$180
B)$60
C)$150
D)$1.50

Question

Quizplus · Accepted Answer

To calculate the interest charges for the month, we use the formula: 
Interest Charges = (APR/365) x Average Daily Balance x Number of Days in the Month

Here, APR = 18%, Average Daily Balance = $10,000, and assuming there are 30 days in the month, we get: 
Interest Charges = (0.18/365) x $10,000 x 30 = $147.95

Rounding up, the answer is $150, which is choice C.

Assuming the APR on Your Credit Card Is 18% and Your