Use the Average Daily Balance Method to Compute the Amount

question 9

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: April (30 days) Previous month's balance: $960 Interest rate: 21%

• A)$14.93
• B)$14.07
• C)$11.61
• D)$17.50

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Definitions:

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing mixes.