Calculate the Monthly Finance Charge for the Credit Card Transaction

Multiple Choice

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 }\\\$ 1,200 \quad 20 \% \quad \$ 400 \quad \begin{array} { l } \text { Average daily } \\\text { balance }\end{array}\end{array}">$\begin{array}{l}\text { cellpadding="0" cellspacing="0" width=" } 62 \% \text { " border="0"> }\\\\\text { Balance Rate Payment Method }\\\$ 1,200 \quad 20 \% \quad \$ 400 \quad \begin{array} { l } \text { Average daily } \\\text { balance }\end{array}\end{array}$

A) $20.00
B) $15.34
C) $19.60
D) $13.33
E) $15.47