Answer:
Monthly finance charge would be 30 cents.
Step-by-step explanation:
To solve the problem, we must find out daily finance charge and then multiply with 30 to get monthly finance charge as monthly cycle number is 30.
It is given :
Average daily balance = $20.00
Daily periodic rate = 0.05%
to get daily finance charge 0.05% of 20 = 0.0005 × 20 = $0.01
Number of days in the cycle = 30 days
Monthly finance charge = $0.01 × 30 = $0.30 or 30 cents
Answer is A. 30 cents.
