select the correct answer. what is the monthly finance charge if the average daily balance is $30, the daily…

select the correct answer. what is the monthly finance charge if the average daily balance is $30, the daily periodic rate is 0.07%, and the number of days in the cycle is 30?\na. 21¢\nb. 63¢\nc. 90¢

select the correct answer. what is the monthly finance charge if the average daily balance is $30, the daily periodic rate is 0.07%, and the number of days in the cycle is 30?\na. 21¢\nb. 63¢\nc. 90¢

Answer

Explanation:

Step1: Convert rate to decimal

$0.07%=0.0007$

Step2: Calculate monthly finance charge

$30\times0.0007\times30 = 0.63$ (in dollars). Since $1$ dollar = $100$ cents, $0.63$ dollars = $63$ cents.

Answer:

B. 63¢