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.

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

interest compounds daily using the avg daily blance

\[1805.59 (1 + \frac{.19}{365})^{30}\]

Answer 2

^^ that is new balance ... subtract 1805.59 to get just the interest

Answer 3

1833.401 ?

Answer 4

1834.00?