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
22.55
Explanation:
22.55 is the answer on Apex.
zero if you pay off balances in full Credit card companies cant charge you interest
$22.54
Given:
Poindexter’s credit card uses the average daily balance method.
After the first 15 days of a 31-day cycle, his balance was $2110
He paid off his entire balance and didn't make any new purchases
His credit card's APR is 26%,
His average daily balance for the month can be computed as:
Day 1 – 15 $2110
Day 16 -31 %0
(Day 1 Balance + Day 2 Balance + Day 3 Balance…) / number of days in the billing cycle
($2110x15)/31
$31,650/31
$1020.97
The interest Poindexter will be charged for the billing cycle is as follows:
((.26/365)*1020.97)*31=
0.000712*1020.97
0.72 *31
$22.54