Question

You owe $561.54 on your credit card. Your average daily balance is $220.77, the billing cycle is 32 days, and the interest rate on the credit card is 19%. What is your interest charge?

Answer 1

First, we need to find the average daily interest rate, which is calculated by multiplying the interest rate by the number of days in a year and then dividing by 365:

19% * 365 / 365 = 0.19 (or 19% expressed as a decimal)

Next, we can calculate the interest charge by multiplying the average daily balance by the average daily interest rate and then multiplying by the number of days in the billing cycle:

$220.77 * 0.19 * 32 = $1,331.27

However, this is the total interest charged if you were to carry a balance for the entire billing cycle. Since you paid off some of the balance during the cycle, the actual interest charged will be lower. To calculate your actual interest charge, you would need to know how much of the balance you paid off and when you made the payments.