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Theresa has a credit card that uses the average daily balance method. For the first 12 days of one of her billing cycles, her balance was $350, and for the last 19 days of the billing cycle, her balance was $520. If her credit card's APR is 14%, which of these expressions could be used to calculate the amount Theresa was charged in interest for the billing cycle?

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nobillionaireNobley
Using the average daily balance method, the amount to be used in calculating Theresa's interest is given by:

[tex] \frac{350\times12+520\times19}{12+19} = \frac{4200+9880}{31} \\ \\ = \frac{14080}{31} =$454.19[/tex]

Therefore, the interest charge on Theresa for the biling cycle is given by:

[tex] \frac{454.19(0.14)}{12} = \frac{63.59}{12} \\ \\ =\$5.30[/tex]

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