Jeremy didn't pay his previous month's credit card bill in full. This month's bill shows a finance charge of $85.50. Jeremy calculates the average daily balance in the new bill to be $5,343.75 What is the monthly Pentage rate on the card? A 1.6% B. 1.92% C 16% D. 19.2%

llm

Answered on Thu May 26 2022

Given,

Finance charge = $ 85.50,

Amount of bill in this month = $ 5,343.75,

Hence, the monthly rate of percentage

= Finance charge*100/Amount of bill

= 85.5 x100/5343.75

= 8550/5343.75

= 1.6 %

OPTION A 1.6% would be correct.