Solve the Problem The Interest Rate on the Card Is 1

question 48

Multiple Choice

Solve the problem.
-On the July 5 billing date, David had a balance due of $857.86 on his credit card. The transactions During the following month were: $$\begin{array} { l l l } \text { July } 6 & \text { Payment } & \$ 278.43 \\\text { July 19 } & \text { Charge: auto repair } & \$ 316 \\\text { August } 1 & \text { Charge: clothing } & \$ 157.38\end{array}$$
The interest rate on the card is 1.8% per month. Using the average daily balance method, find the Finance charge on August 5 (July has 31 days) .

• A) $14.08
• B) $13.89
• C) $13.37
• D) $13.91

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