00:01
Average daily balance of a credit card for one month was $4 ,300.
00:04
The unpaid balance at the end was $6 ,100.
00:09
They charged an annual percentage rate of 21 .6 per month annual rate on the average daily balance.
00:21
So what is the total balance on the next billing cycle for august 1st? well, we need to know how much they can pay an interest.
00:30
And since it's based, on the average daily balance, we do the interest based on $4 ,300.
00:38
So we'll find our $4 ,300.
00:41
We're going to go, interest would be principal, which is $4 ,300, times our interest rate, which is 21 .6%.
00:50
Let's make that 0 .216 per year, and this is going to be for one month...