Calculate the Monthly Finance Charge for the Credit Card Transaction

question 21

Short Answer

Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. Round your answer to the nearest cent.
}\\\\\text { Balance Rate Payment Method }\\\$ 500 \quad 6 \% \quad \$ 250 \quad \begin{array} { l } \text { Average daily } \\\text { balance }\end{array}\end{array}">$\begin{array}{l}\text { cellpadding="0" cellspacing="0" width=" } 63 \% \text { " border="0"> }\\\\\text { Balance Rate Payment Method }\\\$ 500 \quad 6 \% \quad \$ 250 \quad \begin{array} { l } \text { Average daily } \\\text { balance }\end{array}\end{array}$ $ __________

---

Definitions:

Sarbanes-Oxley Act

U.S. legislation enacted in 2002 to protect investors from fraudulent financial reporting by corporations, requiring strict adherence to accounting standards and the establishment of internal controls.

Internal Control

Internal control encompasses the policies and procedures implemented by a business to safeguard its assets, ensure accurate financial reporting, promote accountability, and prevent fraud.

Price-Earnings Ratio

A valuation metric for stocks, calculated as the market price per share divided by the earnings per share (EPS), indicating the dollar amount an investor can expect to invest in a company to receive one dollar of that company's earnings.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.