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Problem:

Henry Garrison starts the month with a balance on his credit card of $1,130. The average daily balance for the month, including the new purchases, is $885. The average daily balance for the month, excluding the new purchases, is $770. Henry's interest rate is one and a half percent for the month. Henry's bank calculates the finance charge on their credit card by using the average daily balance excluding new purchases.

Required:

Question: What would Henry's finance charges be for the month?

$11.55
$16.95
$6.45
$22.20
$13.28

Note: Explain all steps comprehensively.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173745

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