Question

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Answer 1

Answer:

Using the average daily balance method, the amount to be used in calculating Theresa's interest is given by:

\frac{350\times12+520\times19}{12+19} = \frac{4200+9880}{31}  \\  \\ = \frac{14080}{31} =$454.19

Therefore, the interest charge on jerry for the biling cycle is given by:

\frac{454.19(0.14)}{12} = \frac{63.59}{12}  \\  \\ =\365/0.19 *31