Question

Saul has an account with a department store. His daily balance
for the first 11 days of April was $225. His daily balance for
the next 6 days was $262.22. For the last 14 days it was $297.33.
What was his finance charge if the store used a rate of 2%?

Answer 1

First, we need to find Saul's average daily balance for the entire month:

(11 days x $225) + (6 days x $262.22) + (14 days x $297.33) = $6,233.6

Then, we need to multiply the average daily balance by the monthly interest rate:

$6,233.6 x 0.02 = $124.67

So Saul's finance charge would be $124.67 if the store used a rate of 2%.