On October 1st Joe Charged $900 to His Credit Card,on

question 78

Multiple Choice

On October 1st Joe charged $900 to his credit card,on October 10th he charged another $1,300 to his credit card,and on October 15th he charged an additional $100.His credit card charges him an Annual Percentage Rate (APR) of 18% compounded monthly.Using the Average Daily Balance Method calculate Joe's finance charge for the month of October.

• A)$7.12
• B)$28.16
• C)$212.36
• D)$523.14
• E)None of the above are correct answers.

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Definitions:

Percentage of Net Sales

A financial ratio that represents certain expenses, liabilities, or profits as a percentage of the net sales, used to analyze the financial health and performance of a business.

Bad Debts

Amounts owed to a company that are considered uncollectible, typically due to the debtor's inability to pay.

Factoring Commissions

Factoring commissions are fees paid to a factor, or financial intermediary, for advancing funds to a business by purchasing its accounts receivable.

Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered or used but not yet paid for.