The average daily balance is $203.6, and the finance charge is $100.97 if the annual percentage rate is 19.2%
What is APR?
The full name of APR is annual percent rate. It is defined as the percentage rate which applied on the borrowing money in the form of interest but APR applied annually.
We have:
Vincent had these daily balances on his credit card for his last billing period:
9 days at $778.12
8 days at $1,876.00
4 days at $2,112.50
10 days at $1,544.31
The sum of all the balance = $778.12 + $1,876.00 + $2,112.50 + $1,544.31
= $6310.93
Total days = 9+8+4+10 ⇒ 31
The average daily balance = $6310.93/31 ⇒ $203.57 ≈ $203.6
We have APR = 19.2%
Monthly percent rate = 19.2/12 ⇒ 1.6%
Now the finance charge = 1.6% of 6310.93
= 0.016×203.6
= $100.97
Thus, the average daily balance is $203.6, and the finance charge is $100.97
Learn more about the APR here:
https://brainly.com/question/14184570
