Suppose the APR on a credit card is 19%. If a card carries an average daily balance of
$600.00 over one billing period of 30 days, what is the finance charge for that period?

Question

Suppose the APR on a credit card is 19%. If a card carries an average daily balance of
$600.00 over one billing period of 30 days, what is the finance charge for that period?

pphalke · Answer

@jim_thompson5910

austinl · Answer

Considering 14.9 is the average APR one thing you have is bad credit...

austinl · Answer

Also how much are you paying in that 30 day period?

pphalke · Answer

I have no idea

austinl · Answer

If you pay the entire ammount, than your finance charge will be around $9.58.

jim_thompson5910 · Answer

finance charge = (ADB)*(APR)*(time)

ADB is the average daily balance
APR is the annual percentage rate
time is in years. If you're given 1 month, then time is 1/12 years

austinl · Answer

http://www.expenseregister.com/Home/calculators/creditCardPaymentCalculator

pphalke · Answer

it needs a monthly payment amount and this question doesn't have that

pphalke · Answer

@austinl

austinl · Answer

In order to find finance charges you need a time peiod.

pphalke · Answer

30 days

pphalke · Answer

@austinl

pphalke · Answer

@jim_thompson5910 please help, I got the idea how do I solve?

jim_thompson5910 · Answer

finance charge = (ADB)*(APR)*(time)

ADB = 600
APR = 0.19
time = 30/365

pphalke · Answer

I get 3420 is it right @jim_thompson5910

jim_thompson5910 · Answer

that's way too big

pphalke · Answer

whats the answer? I don't know what to calculate

jim_thompson5910 · Answer

what is 30/365 equal to?