Thursday, March 19, 2020

Chapter 6 Financial Planning Exercise 8 Calculating credit card interest

Ruby Wilson, a student at State College, has a balance of $430 on her retail charge card. If the store levies a finance charge of 23 percent per year, how much monthly interest will be added to Ruby’s account? Assume that the balance is computed by the average daily balance method. Assume a 30 day month. Round the answer to 2 decimal places.
$   


$430 x (((23% / 365) x 30) / 100) = $430 x 0.018904 = $8.13

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