SOLUTION: If the average daily balance is $1480.00 and the monthly interest is 2.2%, what is the finance charge for the month?

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Question 974443: If the average daily balance is $1480.00 and the monthly interest is 2.2%, what is the finance charge for the month?
Answer by farohw(175) About Me  (Show Source):
You can put this solution on YOUR website!

To calculate the finance charge using a monthly periodic rate, we multiply:

Average daily balance * monthly periodic rate = monthly finance charge

Convert 2.2% to decimal form 0.022 by dividing 2.2/100

$1,480 * 0.022 = $32.56

$32.56 is your monthly finance charge.