Solve in 10 min plz Use the average daily balance method to compute the amount of interest that will be charged at the end of the billingcycle. Use a 365-day year.Month: May (31 days)Previous month's balance: $950Interest rate: 20%DateMay 3May 12May 21May 29Transactionmade payment of $350purchase of $109purchase of $88made payment of $65OA. $12.19OB. $13.28OC. $8.49O D. $9.45

Average daily balance method means calculation of interest on daily balances outstanding using an…

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compute the amount of interest that will be charged

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PB: Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at...

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Question

Solve in 10 min plz

Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing
cycle. Use a 365-day year.
Month: May (31 days)
Previous month's balance: $950
Interest rate: 20%
Date
May 3
May 12
May 21
May 29
Transaction
made payment of $350
purchase of $109
purchase of $88
made payment of $65
OA. $12.19
OB. $13.28
OC. $8.49
O D. $9.45

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