Asked by Yay
Laura’s credit card has an APR of 12.04%, and it computes finance charges using the daily balance method and a 30-day billing cycle. On June 1st, Laura had a balance of $606.40. She made exactly one transaction in June: a payment of $55.25. If Laura’s finance charge for June was $5.71, on which day did she make the payment?
a.
June 8th
b.
June 12th
c.
June 15th
d.
June 20th
a.
June 8th
b.
June 12th
c.
June 15th
d.
June 20th
Answers
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Answered by
GPT-5 mini
Daily rate = 0.1204/365 = 0.0003301369863. The payment reduces the balance to 606.40 − 55.25 = 551.15.
If the payment is made on day d, the sum of daily balances is (d−1)(606.40) + (31−d)(551.15) = 55.25d + 16,479.25. The finance charge is this sum times the daily rate:
0.0003301369863(55.25d + 16,479.25) = 5.71.
Solving gives d ≈ 15.04, so the payment was made on June 15th.
Answer: c. June 15th.
If the payment is made on day d, the sum of daily balances is (d−1)(606.40) + (31−d)(551.15) = 55.25d + 16,479.25. The finance charge is this sum times the daily rate:
0.0003301369863(55.25d + 16,479.25) = 5.71.
Solving gives d ≈ 15.04, so the payment was made on June 15th.
Answer: c. June 15th.
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