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Use the average daily balance method to compute the finance charge on the credit card account for the previous month. The starting balance and transactions

Use the average daily balance method to compute the finance charge on the credit card account for the previous month. The starting balance and transactions on the account for the month of April are given to the right. Assume an annual interest rate of 18%.

Month: April (30 days); previous month's balance:

$520

April 7

Charged

$81

for a coat

April 10

Made payment of

$240

April 13

Charged

$116

for DVDs

April 17

Charged

$30

for groceries

The finance charge is

$nothing.

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