Solve the Problem The Interest Rate on the Card Is 1

question 77

Multiple Choice

Solve the problem.
-On the January 25 billing date, Vivian had a balance due of $375.46 on her credit card. The Transactions during the following month were: $\begin{array}{lll}\text { January } 26 & \text { Charge : curtains } & \$ 378 \\\text { January } 27 & \text { Payment } & \$ 110.45 \\\text { February } 16 &\text { Charge: tires } & \$ 207.08\end{array}$

The interest rate on the card is 1.2% per month. Using the average daily balance method, find the Finance charge on February 25 (January has 31 days) .

• A) $8.32
• B) $2.08
• C) $8.42
• D) $8.38

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Definitions:

Larger Organizations

Entities that are significant in size due to their vast operational scale, robust infrastructure, and extensive employee base, affecting their management and operational strategies.

Budget Preparation

The process of creating a financial plan to forecast revenues and expenditures for a future period, facilitating financial management and planning.

Financing Activities

Transactions and business events that affect long-term liabilities and equity of a company, included in the cash flow statement section.

Capital Expenditures Budget

A budget allocation for the planned spending on long-term assets, such as buildings, machinery, and equipment, intending to enhance the capacity or efficiency of the business.