Question: Use the average daily balance method to compute the finance charge on the credit card account for the month of August (31 days). The starting

Use the average daily balance method to compute the finance charge on the credit card account for the month of August (31 days). The starting balance from the previous month is $220. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 25% on the account and that the billing date is August 1st.

The finance charge for the month of August is $_?

Use the average daily balance method to compute the finance charge on

Transaction Date August 5 Made payment of $76 August 12 Charged $125 for hiking boots August 19 Charged $29 for gasoline August 22 Charged $31 for restaurant meal Transaction Date August 5 Made payment of $76 August 12 Charged $125 for hiking boots August 19 Charged $29 for gasoline August 22 Charged $31 for restaurant meal

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