To determine the finance charges for month 2, we start by looking at the relevant data given for month 2.
The table specifies the following data for month 2:
- Previous balance: \[tex]$45.00
- Payment received: \$[/tex]50.00
- Finance charges: ?
We know that the Annual Percentage Rate (APR) is 15%, and finance charges are assessed on the previous balance.
Let's break down the calculation step-by-step:
1. Calculate the Monthly Interest Rate (APR):
The APR of 15% is an annual rate, and since finance charges are calculated on a monthly basis, we need to divide the APR by 12 (the number of months in a year).
[tex]\[
\text{Monthly Interest Rate} = \frac{\text{APR}}{12} = \frac{15\%}{12} = \frac{0.15}{12} \approx 0.0125
\][/tex]
2. Determine the Finance Charges for month 2:
Finance charges are calculated based on the previous balance.
[tex]\[
\text{Finance Charges} = \text{Previous Balance} \times \text{Monthly Interest Rate} = \$45.00 \times 0.0125 = 0.5625
\][/tex]
3. Verification of finance charges against the given data:
The calculated finance charges of \[tex]$0.5625 must be matched with one of the available answers to confirm its validity.
Hence, the finance charges for month 2 were:
\[ \boxed{0.56} \]
By comparing the calculated amount with the given answer choices, we find that the closest and correct option is:
\[
\text{C. } \$[/tex]0.56
\]
Therefore, the correct answer is C. \$0.56.
