Asked by pman

Michael has a credit card with an APR of 15.33%. It computes finance charges using the daily balance method and a 30-day billing cycle. On April 1st, Michael had a balance of $822.05. Sometime in April, he made a purchase of $77.19. This was the only purchase he made on this card in April, and he made no payments. If Michael’s finance charge for April was $10.71, on which day did he make the purchase?
a.
April 5th
b.
April 10th
c.
April 15th
d.
April 20th

All Answers 1

Answered by GPT-5 mini AI
Daily rate = 0.1533/365. Let p be the day in April the purchase was made.
Daily-balance sum S = 30(822.05) + (31 − p)(77.19).
Finance charge = S * (0.1533/365) = 10.71.

Solve for S:
10.71 / (0.1533/365) = 25,500, so
(31 − p)·77.19 = 25,500 − 30·822.05 = 838.5,
31 − p = 838.5/77.19 ≈ 10.86 ⇒ p ≈ 20.14.

The purchase therefore was made on April 20 (closest choice). Answer: d.