You have a credit card that charges an interest rate of 19.25% compounded monthly. The table below shows your activity for the month of April.



Date	Activity	 Amount 	 Balance 
April 1	Beginning Balance	 	575.00
April 8	Purchase	35.80	610.80
April 10	Payment	−175.00	435.80
April 18	Purchase	86.50	522.30
April 21	Purchase	14.00	536.30
April 25	Purchase	58.70	595.00
April 30	Ending Balance	 	595.00



To calculate the interest on a credit card balance, we need to take into account the interest rate and the compounding method. For this case, the interest rate is **19.25% compounded monthly**, and we need to calculate the average daily balance to determine how much interest is charged on the balance at the end of the month.

### Steps to calculate interest for April:

1. **Convert the annual interest rate to a monthly interest rate**:
   \[
   \text{Monthly Interest Rate} = \frac{19.25\%}{12} = \frac{19.25}{12} = 1.60417\%
   \]
   
2. **Find the number of days between each activity**:
   - From April 1 to April 8 = 7 days
   - From April 8 to April 10 = 2 days
   - From April 10 to April 18 = 8 days
   - From April 18 to April 21 = 3 days
   - From April 21 to April 25 = 4 days
   - From April 25 to April 30 = 5 days

3. **Calculate the average daily balance**:
   The average daily balance can be calculated by summing the balance for each period, weighted by the number of days in that period.

   \[
   \text{Average Daily Balance} = \frac{(575 \times 7) + (610.8 \times 2) + (435.8 \times 8) + (522.3 \times 3) + (536.3 \times 4) + (595 \times 5)}{30}
   \]

   Let's calculate this value.

I'll calculate the average daily balance and interest based on the results.The **average daily balance** for the month of April is approximately **$514.00**.

### Next step:
To find the interest charged at the end of the month, we will apply the monthly interest rate of **1.60417%** to this average daily balance:

\[
\text{Interest} = \text{Average Daily Balance} \times \frac{\text{Monthly Interest Rate}}{100}
\]

I'll calculate the interest charged based on this balance.The interest charged on your credit card balance for the month of April would be approximately **$8.25**.

### Would you like more details or have any further questions?

Here are 5 questions related to credit card interest:

1. How does the compounding method (daily vs. monthly) affect the interest charged on a credit card?
2. What are some strategies to reduce the interest charges on a credit card?
3. How is the average daily balance method different from other methods of calculating credit card interest?
4. What happens if you make multiple payments within a billing cycle? Does it reduce your interest?
5. How does carrying a balance from month to month impact your credit score?

**Tip:** Paying off your balance in full every month can help you avoid interest charges altogether.

You have a credit card that charges an interest rate of 19.25% compounded monthly. The table below shows your activity for the month of April. Date	Activity	 Amount	 Balance April 1	Beginning Balance	575.00 April 8	Purchase	35.80	610.80 April 10	Payment	−175.00	435.80 April 18	Purchase	86.50	522.30 April 21	Purchase	14.00	536.30 April 25	Purchase	58.70	595.00 April 30	Ending Balance	595.00

Understand how to calculate credit card interest using an average daily balance method with a monthly compounding interest rate of 19.25%. This solution walks through April's activity, applying key formulas for monthly interest rate and interest calculation. Ideal for students in Grades 9-12.

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