Question: Using Daily Average method (the most common used by Credit Card Companies, calculate the interest expense of the following situation: The card has an APR

Using Daily Average method (the most common used by Credit Card Companies, calculate the interest expense of the following situation:

The card has an APR of 21%. The billing period is 30 days.

You start the period with a balance of 1000

On day 11th you purchase clothing for $450

What happens if in the previous example, if you pay $600 on day 21, how would your interest payment change?

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