Peter has an average daily balance on his credit card of \( \$ 127.50 \). His credit card charges \( 14.99 \% \) annual interest. What will his monthly finance charge be? \( \$ 19.08 \) \( \$ 14.99 \) \( \$ 1.25 \) \( \$ 1.59 \)

To calculate the monthly finance charge, you first need to find the annual interest amount on the average daily balance. For Peter's average balance of \( \$ 127.50 \), multiplying this by the annual interest rate \( 14.99\% \) (or 0.1499) gives you the annual interest: \[ \$ 127.50 \times 0.1499 \approx \$ 19.08 \] Now, to find the monthly charge, divide the annual interest by 12 months: \[ \frac{\$ 19.08}{12} \approx \$ 1.59 \] So the monthly finance charge is approximately \( \$ 1.59 \). To confirm, the correct answer is: \( \$ 1.59 \)