The average daily balance for daves last credit card statement was 123.44 and he had to pay a finance charge the apr is 20.4% what is the monthly interest rate what is the finance charge for the month

Monthly interest rate of daves is 1.7% and finance charge for a month = 2.09848 unit of currency.

Solution:

Need to calculate monthly interest rate and finance charge for the month for Dave’s credit card.

Given that  

Average daily balance for Dave’s last credit card statement = 123.44

he had to pay a finance charge with APR of 20.4%

A.P.R is annual percent rate that is for 12 months

So for 1 month, interest = 20.4/12 = 1.7%

Average daily balance of Dave on which finance charges got applied = 123.44

Finance charges for 1 month = 1.7% of 123.44  

Hence monthly interest rate is 1.7% and finance charge for a month = 2.09848 unit of currency.