Question

question 7 (12.5 points)
find the amount of interest charged for a credit card based on the an average daily balance (adb) of $868.90, annual interest rate of 22.30%, 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 7
question 8 (12.5 points)

Explanation:

Step1: Convert rate to decimal

$r = 22.30\% = \frac{22.30}{100} = 0.2230$

Step2: Substitute values into formula

$I = \frac{868.90 \times 0.2230 \times 31}{365}$

Step3: Calculate numerator first

$868.90 \times 0.2230 \times 31 = 868.90 \times 6.913 = 5906.7057$

Step4: Divide by 365

$I = \frac{5906.7057}{365} \approx 16.182755$

Step5: Round to nearest cent

Round $16.182755$ to two decimal places.

Answer:

$16.18$