Question 9 of 10 Poindexter has a credit card that uses the average daily balance method. For the first 15 days of a 31-day billing cycle, his balance was 2110 but then he paid off his entire balance and didn't make any new purchases. If his credit card's APR is 26% how much was Poindexter charged in interest for the billing cycle? A. 24.05 B. 46.59 C. 0 D. 22.55

To solve this problem, we need to calculate the average daily balance and then use it to determine the interest charged for the billing cycle.<br /><br />Given information:<br />- Poindexter's credit card uses the average daily balance method.<br />- For the first 15 days of the 31-day billing cycle, his balance was $2,110.<br />- He paid off his entire balance and didn't make any new purchases for the remaining 16 days.<br />- The credit card's APR is 26%.<br /><br />Step 1: Calculate the average daily balance.<br />Average daily balance = (Sum of daily balances) / (Number of days in the billing cycle)<br />Average daily balance = ($2,110 × 15 days + $0 × 16 days) / 31 days<br />Average daily balance = $1,050<br /><br />Step 2: Calculate the interest charged for the billing cycle.<br />Interest charged = (Average daily balance × APR × Billing cycle) / 12 months<br />Interest charged = ($1,050 × 0.26 × 31) / 12<br />Interest charged = $22.55<br /><br />Therefore, the correct answer is D. $22.55.