select the correct answer. what is the monthl...
select the correct answer. what is the monthly finance charge if the average daily balance is $15, the daily periodic rate is 0.06%, and the number of days in the cycle is 30? a. 27¢ b. 45¢ c. 90¢
Answer
# Explanation:
## Step1: Convert the daily - rate to a decimal
The daily periodic rate is $0.06\%$, which in decimal form is $0.0006$ ($0.06\div100 = 0.0006$).
## Step2: Calculate the monthly finance charge
The formula for the finance charge is $Finance\ Charge=Average\ Daily\ Balance\times Daily\ Periodic\ Rate\times Number\ of\ Days$.
Substitute the given values: $15\times0.0006\times30$.
First, $15\times0.0006 = 0.009$.
Then, $0.009\times30=0.27$. Since the result is in dollars and we want the answer in cents, $0.27$ dollars is $27$ cents.
# Answer:
A. 27¢