Problem:
Henry Garrison starts the month with a balance on his credit card of $1,130. The average daily balance for the month, including the new purchases, is $885. The average daily balance for the month, excluding the new purchases, is $770. Henry's interest rate is one and a half percent for the month. Henry's bank calculates the finance charge on their credit card by using the average daily balance excluding new purchases.
Required:
Question: What would Henry's finance charges be for the month?
- $11.55
- $16.95
- $6.45
- $22.20
- $13.28
Note: Explain all steps comprehensively.