Question

A credit card calculates interest using the average daily balance method. The card charges 19.0% annual interest rate on the average daily balance. The following transactions occurred during the June 1 – June 30 billing period.
https://courses.knewton.com/remote/api/content//KH_ASU_MAT142_Finance_9.3_TestOut1_tg21_regen1.GIF

The average daily balance for the billing period is $1,805.59. Find the interest to be paid on July 1, the next billing date. Round to the nearest cent.

Answer 1

anyone??

Answer 2

the interest is compounded daily using the avg daily balance....find the effective monthly int rate using formula
\[i = (1+\frac{APR}{365})^{30} - 1\]
Interest = avg daily balance * i

Answer 3

i got 30.56

Answer 4

http://www.wolframalpha.com/input/?i=1805.59*%28%281%2B%28.19%2F365%29%29%5E30+-1%29

Answer 5

you may be wrong due to rounding .... try not to round until very end, calculator will store answers

Answer 6

29.02?

Answer 7

haha click the link

Answer 8

ahh.. i dunno what i did wrong

Answer 9

prob put it in your calculator wrong

Answer 10

yeah. ok thank you