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Use the Average Daily Balance Method to Compute the Amount

Question 13

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: May (31 days)
Previous month's balance: $ 950
Interest rate: 18%
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: May (31 days) Previous month's balance: $ 950 Interest rate: 18% A) $ 7.55 B) $ 8.40 C) $ 11.82 D) $ 10.84


A) $ 7.55
B) $ 8.40
C) $ 11.82
D) $ 10.84

Correct Answer:

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