Question 20110 Joey has a credit card that uses the previous balance method The opening balance of one of his 30-day billing cycles was 0, but this was his balance for only the first 15 days of the billing cycle. He then made a purchase that increased his balance to 7200 and his balance stayed this amount for the remainder of the billing cycle. If his credit card's APR is 13% how much was Joey charged in interest for the billing cycle? A. 38.47 B. 76.93 C. 93.60 D. 0

To solve this problem, we need to calculate the interest charged on Joey's credit card balance using the previous balance method.<br /><br />Given information:<br />- The opening balance of the billing cycle was $0.<br />- The balance increased to $7200 for the remaining 15 days of the billing cycle.<br />- The credit card's APR is 13%.<br /><br />Step 1: Calculate the daily interest rate.<br />APR = 13%<br />Daily interest rate = APR / 365 = 13% / 365 = 0.0356% per day<br /><br />Step 2: Calculate the interest charged for the 15 days.<br />Interest charged = Previous balance × Daily interest rate × Number of days<br />Interest charged = $0 × 0.0356% × 15 = $0<br /><br />Therefore, the correct answer is D. $0.