Use the Average Daily Balance Method to Compute the Amount

question 29

Multiple Choice

Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing cycle. Use a 365-day year.
-Month: February (28 days) Previous month's balance: $1240 Interest rate: 22%

• A)$15.96
• B)$19.71
• C)$18.22
• D)$8.31

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Definitions:

Supply

The number of products—goods and services—that businesses are willing to sell at different prices at a specific time.

Demand

The number of goods and services that consumers are willing to buy at different prices at a specific time.

Profits

The financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.