Calculate the interest on a $1700 credit card bill that shows a 22% APR, using the average daily balance method. Assume you sent a payment of $375 on the first day of a month that has 30 days and it takes 5 days for this payment to be received and recorded. Round to the nearest penny.

Question

Calculate the interest on a $1700 credit card bill that shows a 22% APR, using the average daily balance method. Assume you sent a payment of $375 on the first day of a month that has 30 days and it takes 5 days for this payment to be received and recorded. Round to the nearest penny.


a.$27.04

b.$25.09

c.$28.56

d.$28.60


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I just can't figure this question out...... please help!

I get the answe 30.73 but it is not the right answer. I did this.

1700 x 0.22 x 30/365= 30.73

Answer 1

remeber you find intetrist in a year
basis so if you change 30 to 1/12 than you will get your answer

Answer 2

you mean 1700x0.02x1/12=31.16?

that is not the right answer though :(