Henry finance charges be for the month


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.

 

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Accounting Basics: Henry finance charges be for the month
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