Question

oindexter has a credit card that uses the average daily balance method. For the first 15 days of a 31-day billing cycle, his balance was $2110, but then he paid off his entire balance and didn't make any new purchases. If his credit card's APR is 26%, how much was Poindexter charged in interest for the billing cycle? HURRY

Answer 1

Answer:

The answer is option C: $22.55.

Step-by-step explanation:

Given is that Poindexter’s credit card uses the average daily balance method.

For the first 15 days of a 31-day cycle, his balance was $2110

He paid off his entire balance and didn't make any new purchases after that.

Means for the first 15 days, the balance was $2110 and for last 16 days the balance was$0.

The APR is 26% or 0.26

The interest can be calculated as:

$\frac{15}{365} \times0.26\times2110=22.545$ ≈ $22.55

The interest charged was $22.55

Answer 2

Answer:

The answer is either B or C. But I'd go with C