A credit card statement showed these transactions during October. October 1 Previous balance $257.28 October 12 Purchases $79.55 October 29 Payment $55.00 The credit card has an interest rate of 4.5% on the average daily balance. Find the average daily balance, the finance charge for the month, and the new balance on November 1. [Hint: Remember that October has 31 days.]

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A:

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A:

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A: Answer is Option B =$151.28

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A: Computation:

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Credit card

A credit card is provided by financial institutions or banks, which permits a person to borrow money on a preapproved limit for purchases on a credit basis. The credit limit is decided by the institution and bank which issues a credit card depending on the person’s credit score and income. A cardholder can use the card for credit purchases, a balance transfer, cash advances.