Question

question 8 (12.5 points)
find the amount of interest charged for a credit card based on the an average daily balance (adb) of $733.10, annual interest rate of 15.30%, and a billing cycle of 31 days.
use this formula:
$i = \frac{adb \times r \times d}{365}$
round to the nearest cent.
your answer:
answer
view hint for question 8

Explanation:

Step1: Convert rate to decimal

$r = 15.30\% = 0.1530$

Step2: Substitute values into formula

$$I = \frac{733.10 \times 0.1530 \times 31}{365}$$

Step3: Calculate numerator first

$733.10 \times 0.1530 = 112.1643$
$112.1643 \times 31 = 3477.0933$

Step4: Divide by 365 and round

$I = \frac{3477.0933}{365} \approx 9.53$

Answer:

$\$9.53$