Walter has a credit card that uses the average daily balance method. for the first 15 days of a 31-day billing cycle, his balance was $1440, but then he paid off his entire balance and didn't make any new purchases. if his credit card's apr is 22%, how much was walter charged in interest for the billing cycle? a.$13.02 b.$13.89 c.$0 d.$26.91

option A is correct, i.e. $13.02

Step-by-step explanation:

Given the information "For the first 15 days of a 31-day billing cycle, his balance was $1440, but then he paid off his entire balance and didn't make any new purchases."

It means Average Daily Balance = (15 x 1440) / 31 = $696.77

Given his credit card's APR is 22%, Interest rate = r = 22/36500 = 0.00060274

Billing cycle = 31 days.

Interest = Average daily balance x Interest rate x Billing cycle.

Interest = $696.77 x 0.00060274 x 31 = 13.01910564 ≈ $13.02

Hence, option A is correct, i.e. Interest = $13.02

answer:

payment just for service  

→

$

87.12

payment for service including tax

→

$

94.09

explanation:

service only with 20% tip  

→

$

72.6

(

1

+

20

100

)

=

$

87.12

in the opening of the question the word 'service' is associated only with the pretax value.

the closing part of the question asks: how much did she pay for the  

service

−−−−−−  

so technically the answer is  

→

$

72.6

(

1

+

20

100

)

=

$

87.12

however, the intention of the question provider may have been that your answer is to be  

$

87.12

(

1

+

8

100

)

=

$

94.09

to 2 decimal places.

'

payment just for service  

→

$

87.12

payment for service including tax

→

$

94.09

tony b

mar 21, 2017

answer:

trying to explain it another way

explanation:

service charge  

.

→

$

72.60

20% tip  

20

100

×

$

72.60

=

$

14.52

−−−−−−  

←

add

$

87.12

tax  

8

100

×

$

87.12

=

$

6.97

−−−−−  

←

add

$

94.09

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