To determine Andrew's March finance charge, we will calculate the finance charge using the previous balance method. Here is a step-by-step breakdown of the calculations involved:
1. Annual Percentage Rate (APR):
- Andrew's credit card has an APR of [tex]\(16.60\%\)[/tex].
2. Converting APR to a Daily Periodic Rate:
- The APR is converted to a daily periodic rate by dividing it by the number of days in a year (365 days).
- [tex]\[
\text{Daily Periodic Rate} = \frac{APR}{365} = \frac{16.60\%}{365} = \frac{0.1660}{365} \approx 0.0004548
\][/tex]
3. Billing Cycle Length:
- Andrew’s billing cycle is 30 days.
4. Previous Balance Method:
- The finance charge is computed based on the balance at the beginning of the billing cycle. According to the problem statement, the beginning balance on March 1st was $1794.30.
5. Calculating the Finance Charge:
- The finance charge is calculated using the previous balance, the daily periodic rate, and the length of the billing cycle.
- [tex]\[
\text{Finance Charge} = \text{Previous Balance} \times \text{Daily Periodic Rate} \times \text{Billing Cycle Length}
\][/tex]
- Substituting the given values:
- [tex]\[
\text{Finance Charge} = 1794.30 \times 0.0004548 \times 30
\][/tex]
- [tex]\[
\text{Finance Charge} \approx 1794.30 \times 0.013644 \approx 24.48
\][/tex]
Therefore, Andrew's March finance charge is:
[tex]\[
\boxed{24.48}
\][/tex]
