To the nearest cent, what is the finance charge, if the charge is computed on average daily balance at a periodic monthly rate of 3.2%?

Finance charge is $100.34

Step-by-step explanation:

Given : The table attached in the question and the charge is computed on average daily balance at a periodic monthly rate of 3.2%.

To find : What is the finance charge?

Solution :

We have given the number of days and sum of balances.

So, we find the finance charge of each dates one by one.

Finance rate = 3.2%=0.032

Using the formula,

Refer the table,

First finance charge is,

Number of days=5, Total number of days = 31 , Finance rate = 0.032 , sum of balance=$1375

Similarly, we put all the values from the table and we get,

Now, the total finance charge is

$1=100 cent

$100.34=10034 cent.