Finance Charge Calculation Quiz

What is the average daily balance?

• The total balance at the end of the month

• The average of the account balance at the end of each day of the billing period

• The highest balance during the billing period

• The lowest balance during the billing period

How do you calculate the Average Daily Balance?

• Total Balance / Number of Transactions

• Sum of Daily Balances / Number of Days

• Total Expenditure / Number of Days

• Total Income / Number of Days

What is the formula for calculating the Finance Charge?

• Average Daily Balance + Periodic Rate

• Average Daily Balance x Periodic Rate

• Unpaid Balance x Periodic Rate

• Unpaid Balance + Average Daily Balance

What is the third step in calculating the new balance using the Unpaid Balance Method?

• Calculate the Average Daily Balance

• Calculate the Finance Charge

• Calculate the New Balance

• Calculate the Total Expenditure

What does the finance charge depend on?

• Total Income

• Average Daily Balance and Periodic Rate

• Total Expenditure

• New Purchases

How many days are considered in the calculation for June Keeper's average daily balance?

• 17

• 10

• 28

• 31

How many days was the end-of-day balance $245.78 for June Keeper?

• 10

• 1

• 17

• 20

How many days are considered in the calculation for Ty Johnson's average daily balance?

• 31

• 30

• 10

• 18

What is the end of day balance for Teressa Bertolli on 6/13?

• $835.20

• $910.20

• $785.20

• $1,250.00

What is the payment made by Ty Johnson on 8/14?

• $225.00

• $500.00

• $75.00

• $50.00