Find the finance charge on an average daily balance of $\$ 253.84$ if the monthly interest rate is $1.5 \%$. Assume interest is calculated on the average daily balance of the account.
The finance charge is $\$ \square$.
(Round to the nearest cent as needed.)
Answer
Finally, round the finance charge to the nearest cent to get the final answer. So, \(3.8076\) rounds to \(\boxed{3.81}\).
Step 1 ：Given the average daily balance of $253.84 and a monthly interest rate of 1.5%.
Step 2 ：First, convert the monthly interest rate from a percentage to a decimal by dividing by 100. So, \(1.5\% = \frac{1.5}{100} = 0.015\).
Step 3 ：Next, calculate the finance charge by multiplying the average daily balance by the monthly interest rate. So, \(253.84 \times 0.015 = 3.8076\).
Step 4 ：Finally, round the finance charge to the nearest cent to get the final answer. So, \(3.8076\) rounds to \(\boxed{3.81}\).
