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Use the Average Daily Balance Method to Compute the Amount

Question 47

Multiple Choice

Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing cycle. Use a 365-day year:
-Month: July (31 days)
Previous month's balance: $ 840
Interest rate: 16%
Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing cycle. Use a 365-day year: -Month: July (31 days) Previous month's balance: $ 840 Interest rate: 16% A) $ 9.94 B) $ 8.54 C) $ 8.47 D) $ 8.75


A) $ 9.94
B) $ 8.54
C) $ 8.47
D) $ 8.75

Correct Answer:

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