Question

Last month the ending balance on Maryanne’s Mastercard was $1,789, the average daily balance was $755, and the monthly periodic rate is 1.85%. Her finance charge can be calculated by multiplying the ending balance times the monthly periodic rate. So the finance charge is $1,789 ´ 0.0185 = $33.10.

Answer 1

Answer:

False

Step-by-step explanation:

Based on the information given we can calculate the finance charge of Maryanne’s by simply multiplying her average daily balance which is the amount of $755 times her monthly periodic rate which is 0.0185.

Hence, Maryanne's finance charge is calculated by using this formula

Finance charge=Average daily balance*Monthly periodic rate

Let plug in the formula

Finance charge= $755* 0.0185

Finance charge= $13.97

Therefore Maryanne's finance charge will be $13.97