Calculate the finance charge for a credit card that has the given average daily balance and interest rate. (Round your answer to the nearest cent.)

Average daily balance: $119.43; monthly interest rate: 1.65%

$ 

To calculate the finance charge for a credit card, we use the formula:

\[
\text{Finance Charge} = \text{Average Daily Balance} \times \text{Monthly Interest Rate}
\]

Here:

- **Average Daily Balance** = $119.43
- **Monthly Interest Rate** = 1.65% (or 0.0165 as a decimal)

Calculating:

\[
\text{Finance Charge} = 119.43 \times 0.0165 = 1.970595
\]

Rounding to the nearest cent:

\[
\text{Finance Charge} \approx 1.97
\]

**Answer:** The finance charge is **$1.97**.

Would you like more details on this calculation or have any questions?

### Additional Questions for Practice
1. How would the finance charge change if the monthly interest rate were 2% instead of 1.65%?
2. What would be the finance charge if the average daily balance increased to $150 with the same interest rate?
3. How does changing the compounding period (e.g., monthly vs. daily) affect the finance charge?
4. What is the annual interest rate corresponding to a 1.65% monthly rate?
5. If the interest rate decreased to 1%, what would the new finance charge be?

#### Tip:
To find the annual percentage rate (APR), multiply the monthly rate by 12.

Calculate the finance charge for a credit card that has the given average daily balance and interest rate. (Round your answer to the nearest cent.)

Average daily balance: $119.43; monthly interest rate: 1.65%

Learn how to calculate the finance charge for a credit card using an average daily balance of $119.43 and a monthly interest rate of 1.65%. This detailed solution covers interest calculation basics, finance concepts, and rounding methods, suitable for high school students.

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