A charge account had a balance of $994 on May 5. A purchase of $291 was made on May 17, and a payment of $175 was made on May 20. The interest on the average daily balance is 1.4% per month. Find the finance charge on the June 5 bill. (Round your answer to the nearest cent.)

To find the finance charge on the June 5 bill, we need to use the **average daily balance method**. Here's how we can break it down:

### 1. **Calculate the daily balances**:
We need to determine the balance for each day from May 5 to June 5 and use the information about the purchase and the payment.

- **From May 5 to May 16 (12 days)**:  
  The balance remains at $994.

- **From May 17 to May 19 (3 days)**:  
  A purchase of $291 is made on May 17. The new balance becomes:
  \[
  994 + 291 = 1285
  \]

- **From May 20 to June 5 (16 days)**:  
  A payment of $175 is made on May 20. The new balance becomes:
  \[
  1285 - 175 = 1110
  \]

### 2. **Determine the average daily balance**:
Now, let's calculate the average daily balance for the period from May 5 to June 5 (which is 31 days).

\[
\text{Average daily balance} = \frac{(994 \times 12) + (1285 \times 3) + (1110 \times 16)}{31}
\]

\[
= \frac{(11928 + 3855 + 17760)}{31} = \frac{33543}{31} = 1082.03
\]

### 3. **Calculate the finance charge**:
The monthly interest rate is 1.4%, so the finance charge is calculated as:

\[
\text{Finance charge} = 1082.03 \times \frac{1.4}{100} = 15.15
\]

### Final Answer:
The finance charge on the June 5 bill is **$15.15**.

Would you like further details or have any questions? 

Here are some related questions:
1. How would the finance charge change with a different interest rate?
2. What happens if the payment is delayed until June 5?
3. How does the finance charge compare if you made multiple purchases in a month?
4. How would the balance affect the finance charge in a year with this monthly rate?
5. What is the impact of paying off the balance earlier?

**Tip:** Keeping track of when purchases and payments are made can help minimize finance charges by reducing the average daily balance.

Learn how to calculate the finance charge on a charge account using the average daily balance method. This problem involves determining daily balances, calculating the average, and applying a monthly interest rate of 1.4%. Ideal for high school students in Grades 10-12.

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