Question

Carla has a credit card that uses the average daily balance method. For the first 15 days of a 31-day billing cycle, her balance was $2560, but then she paid off her entire balance and didn't make any new purchases. If her credit card's APR is 28%, how much was Carla charged in interest for the billing cycle?
A.$29.46
B.$31.42
C.$60.88
D.$0

Answer 1

A.29.46 They say i need 20 characters but idek how i got it tbh i just know i put it in and it was right

Answer 2

Answer:

Option A $29.46 is correct.

Step-by-step explanation:

Credit card's billing cycle  = 31 days

To calculate the average daily balance we must add Carla's balance from each day in the billing cycle and divide by the number of days of the month.

( Total balance × days ) / number of days of the month

(2560 × 15) ÷31 = $1238.71

Her credit card's APR is 28%  Therefore Carla charged

(1238.71 × 0.28 × 31) ÷ 365

10,752.0028 ÷ 365 = 29.4575 Rounded to $29.46

Carla charged in interest for the billing cycle is $29.46.