Search for question
Question

The unpaid balance at the start of a 28-day billing cycle was $986.79. A $7,000 purchase was made on the first day of the billing cycle and a $150 payment was credited to the account on day 21. How much interest will be charged at the end of the billing cycle? Assume that the annual interest rate on a credit card is 25.65% and interest is calculated by the average daily balance method.

Fig: 1