THIS USER ASKED πŸ‘‡

Poindexter has a credit card that uses the average daily balance method. for the first 15 days of a 31-day cycle, his balance was $2110, but then he paid off his entire balance and didn’t make any new purchases. if his credit card’s apr is 26%, how much was poindeexter charged in interest for the billing cycle

THIS IS THE BEST ANSWER πŸ‘‡

$ 22.54

Given:

Poindexter credit card uses the average daily balance method.

After the first 15 days of a 31-day cycle, his balance was $ 2110

He paid his full balance and made no new purchases

His credit card is 26% APR,

Its average daily balance for the month can be calculated as:

Day 1 – 15 $ 2110

Day 16 -31% 0

(Day Balance 1 + Day Balance 2 + Day Balance 3…) / number of days in the billing cycle

($ 2110×15) / 31

$ 31,650 / 31

$ 1020.97

The following is the interest charged by Poindexter on the billing cycle:

((.26 / 365) * 1020.97) * 31 =

0.000712 * 1020.97

0.72 * 31

$ 22.54