Mikas credit card statement showed these transactions during

Mika\'s credit card statement showed these transactions during the month of June: June 1 Previous Balance $306.32 June 10 Purchases $402.16 June 19 Payment $300.00 Find the average daily balance. The average daily balance is s$467.83 Find the finance charge for the month. The interest rate is 1.1% per month on the average daily balance. The finance charge for the month is $

Solution

As we have already got the correct average daily balance as 467.83

So total interest to be applied = 1.1 % of 467.83 = 0.011 x 467.83 = 5.146

So required financial charge $5.15

nswer