Question

has a that the . For the of of , was $350, and for the of the , was $520. If 's is 14%, which of these could be to calculate the was in for the ?

Answer 1

Using the average daily balance method, the amount to be used in calculating Theresa's interest is given by:

350x12+250x19/12+19  = 4200+9880/31

14080/31=454.19

Therefore, the interest charge on Theresa for the billing cycle is given by:

454.19x0.14/12 =63.59/12

=$5.30