Fred Has a Credit Card Which Uses the Average Daily

question 77

Multiple Choice

Fred has a credit card which uses the average daily balance method,has a 30-day billing period,a 21-day grace period and charges 21 percent annual interest calculated (but not compounded) daily.His average daily balance for the billing period was $7900,and he could not pay it off until received his pay cheque eight days after the statement due date.How much interest does he owe?

• A)$268.17
• B)$172.72
• C)$136.36
• D)$36.36

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Definitions:

HIV Infections

Refers to the occurrence of HIV, a virus that attacks the immune system, within an individual's body, potentially leading to AIDS if not treated effectively.

Heterosexual Transmission

The spread of infectious diseases, such as HIV, from one individual to another through heterosexual contact.

HIV/AIDS

A virus (HIV) that attacks the immune system, and its most advanced stage, AIDS, characterized by the development of certain cancers, infections, or other severe long-term clinical manifestations.

United States

A country located primarily in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.