Ralph just received his June FlashCard bill. He did not pay his May bill in full, so his June bill shows a previous balance and a finance charge. The average daily balance is $470, and the monthly periodic rate is 1.5%. What should Ralph's finance charge be? 


To calculate Ralph's finance charge for June, we can use the formula:

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

Given:
- Average Daily Balance = $470
- Monthly Periodic Rate = 1.5% = 0.015 (as a decimal)

Now, plug in the values:

\[
\text{Finance Charge} = 470 \times 0.015 = 7.05
\]

Ralph's finance charge for June should be **$7.05**.

If you have any questions or would like further details, let me know! Here are some related questions you might consider:

1. How does the average daily balance affect finance charges?
2. What would the finance charge be if the average daily balance was higher or lower?
3. How can Ralph avoid finance charges in the future?
4. What are the implications of carrying a balance from month to month?
5. How is the monthly periodic rate determined by credit card companies?

**Tip:** Always try to pay off your credit card balance in full each month to avoid finance charges.

Ralph just received his June FlashCard bill. He did not pay his May bill in full, so his June bill shows a previous balance and a finance charge. The average daily balance is $470, and the monthly periodic rate is 1.5%. What should Ralph's finance charge be?

Find out how to calculate Ralph's finance charge based on an average daily balance of $470 and a monthly periodic rate of 1.5%. This example explains finance charge calculations for credit card balances and teaches essential concepts in percentage and interest calculation.

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