Solve the problem.
-On the October 15 billing date, Jacob had a balance due of $292.31 on his credit card. The Transactions during the following month were: $\begin{array}{lll}
\text { October } 17& \text { Payment } & \$ 24.28 \
\text { October } 30& \text { Charge: groceries } & \$ 52.48 \
\text { November } 10& \text { Charge: freezer } & \$ 281.86
\end{array}$

The interest rate on the card is 1.3% per month. Using the average daily balance method, find the Balance due on November 15 (October has 31 days).
A) $606.81
B) $607.71
C) $606.82
D) $606.71

Question

Solve the problem.
-On the October 15 billing date, Jacob had a balance due of $292.31 on his credit card. The Transactions during the following month were: $\begin{array}{lll}
\text { October } 17& \text { Payment } & \$ 24.28 \
\text { October } 30& \text { Charge: groceries } & \$ 52.48 \
\text { November } 10& \text { Charge: freezer } & \$ 281.86
\end{array}$

The interest rate on the card is 1.3% per month. Using the average daily balance method, find the Balance due on November 15 (October has 31 days).
A) $606.81
B) $607.71
C) $606.82
D) $606.71

Quizplus · Accepted Answer

The average daily balance is calculated by considering the balance for each period: $292.31 for 2 days, $268.03 for 13 days, $320.51 for 11 days, and $602.37 for 19 days. The average daily balance is $448.97. The interest for the month is $5.84. Adding this to the last balance of $602.37 gives $606.82.

Solve the Problem The Interest Rate on the Card Is 1