Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing
cycle. Use a 365-day year.
-Month: July (31 days) Previous month's balance: $840
Interest rate: 20%
A) $10.56
B) $12.40
C) $10.66
D) $10.92

Question

Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing
 cycle. Use a 365-day year.
-Month: July (31 days) Previous month's balance: $840
Interest rate: 20% 
A) $10.56 
B) $12.40 
C) $10.66 
D) $10.92

Quizplus · Accepted Answer

The Answer of Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing
 cycle. Use a 365-day year.
-Month: July (31 days) Previous month's balance: $840
Interest rate: 20% 
A) $10.56 
B) $12.40 
C) $10.66 
D) $10.92

Use the Average Daily Balance Method to Compute the Amount