Question
\begin{tabular}{l|l} Find the finance charge on an average daily balance of & The finance charge is \( \$ \square \). \\ \( \$ 1752.81 \) in a revolving charge account if the monthly & (Round to the nearest cent.) : \\ interest rate is \( 1.5 \% \). \end{tabular}
Ask by Cox Daniels. in the United States
Mar 17,2025
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Tutor-Verified Answer
Answer
The finance charge is \$26.29.
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To find the finance charge on an average daily balance of $1752.81 with a monthly interest rate of 1.5%, you can use the formula: \[ \text{Finance Charge} = \text{Average Daily Balance} \times \text{Monthly Interest Rate} \] Substituting the given values: \[ \text{Finance Charge} = 1752.81 \times 0.015 = 26.29215 \] Rounding to the nearest cent, the finance charge is \( \$26.29 \).