What is the monthly finance charge if the average daily balance is $15, the daily periodic rate is 0.06%, and the number of days in the cycle is 30?
A.
27¢
B.
45¢
C.
90¢
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Question

What is the monthly finance charge if the average daily balance is $15, the daily periodic rate is 0.06%, and the number of days in the cycle is 30?
A. 
27¢
B. 
45¢
C. 
90¢
Reset Next

nettym · Answer

Any ideas/guesses on what it might be?

Tonycoolkid21 · Answer

@omarRS

Hoodmemes · Answer

The site refreshed and my entire answer was deleted but I'll try again now.

Ok we can make (0.06%) a (Decimal) by (Dividing) (0.06) by (100)

$$0.06\div100=0.0006$$

As we can see it says " average daily balance is $15"

We can (Multiply) (0.0006) by (15)

$$0.0006\times15=0.009$$

Again we see it says "number of days in the cycle is 30"

We can simply just (Multiply) (0.009) by (30)

$$0.009\times30=0.27$$

Now (0.27) can also be known as (27) " Not dollars tho, I'd say this bc there is nothing in the (One's Place) so it would just make the (27) cents "

So the answer would be A.) 27¢

(I think we can do it the other way and still get the right answer)

$$0.06\div100=0.0006$$

$$0.0006\times30=0.018$$

$$0.018\times15=0.27$$

So it would basically still have the answer of 27 cents

(Also its better to use the method you were taught "The First Way I Solved The Problem" instead of a different method due to the fact a different method does not always give u the correct answer)

But Again, The Month finance change is A.)27¢