Randy Ice Starts the Month with a Balance on His

Multiple Choice

Randy Ice starts the month with a balance on his credit card of $1,000.On the 10^th day of the month,he purchases $200 in clothes with his credit card.On the 15^th day of the month he makes a payment on his credit card of $500.The average daily balance for the month including the new purchase is $883.The average daily balance for the month excluding the new purchase is $750.The bank charges 1.5 percent per month and uses the average daily balance excluding new purchases method.What would Randy's finance charges be for the month?

A) $7.50
B) $13.25
C) $11.25
D) $15.00
E) $18.00