Solve the Problem. Round to the Nearest Cent

question 31

Multiple Choice

Solve the problem. Round to the nearest cent.
-The unpaid balance in an account on December 1 was $174. A payment of $45 was made on December 18. The finance charge rate was 1.2% per month of the average daily balance. Find the
Finance charge for the month of December.

• A)$1.84
• B)$3.64
• C)$1.55
• D)$1.74

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Definitions:

Perfect Competitor

A theoretical market structure where many firms sell identical products, no single firm can influence the market price, and all possess perfect market information.

Average Costs

The total cost of production divided by the number of goods produced, often used to assess cost efficiency.

Government Franchises

Government franchises are rights or licenses granted by the government to entities, allowing them to operate specific services or activities under regulation.

Perfect Knowledge

A theoretical concept where all consumers and producers have complete and instantaneous information about all aspects of the market.