Use the Average Daily Balance Method to Compute the Amount

question 45

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: May (31 days) Previous month's balance: $960

• A)$7.88
• B)$12.35
• C)$11.31
• D)$8.76

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Definitions:

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