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FinanceQ&A LibraryAssume no purchases or returns are made in the exercise given below. At the beginning of a 31-day billing period, Sandra Lazzaro has an unpaid balance of$730on her credit card. Three days before the end of the billing period, she pays$600Find her finance charge at3.4%per month using the average daily balance method.The finance charge for Sandra Lazzaro is$Question

Asked Nov 7, 2019

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Assume no purchases or returns are made in the exercise given below.

At the beginning of a 31-day billing period, Sandra Lazzaro has an unpaid balance of

$730

on her credit card. Three days before the end of the billing period, she pays
$600

Find her finance charge at
3.4%

per month using the average daily balance method.The finance charge for Sandra Lazzaro is

$

Step 1

Sandra Lazzaro has a unpaid balance of $730. $730 was available for 31 days; Just 3 days before the billing cycle, she paid $600.

Her current balance becomes = $730- $600 = $130

Step 2

Now $130 is available for 3 days i.e. 31-28 = 3 days.

We multiply 730*31= $20,44...

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