Question

Jeremy didn't pay his previous month's credit card bill in full. This month's bill shows a finance charge of $85.50. Jeremy calculates the average daily balance in the new bill to be $5,343.75 What is the monthly Pentage rate on the card?
A 1.6%

B. 1.92%

C 16%

D. 19.2%

Answer 1

Answer:

The monthly percentage rate would be 1.6%

Step-by-step explanation:

Given,

Finance charge = $ 85.50,

Amount of bill in this month  = $ 5,343.75,

Hence, the monthly rate of percentage

$=\frac{\text{Finance charge}}{\text{Amount of bill}}\times 100$

$=\frac{85.5}{5343.75}\times 100$

$=\frac{8550}{5343.75}$

$=\frac{855000}{534375}$

= 1.6 %

i.e. OPTION A would be correct.