Jalen had to pay $⁢2,000 on his credit card for some home repairs, which has an APR of 16% Let n be the average daily balance and o the monthly finance charge. Which equation best determines o using the APR?

Convert the 16% APR to a monthly rate by dividing by 12: 0.16 ÷ 12. Multiply that monthly rate by the average daily balance n, so the finance charge is o = (0.16 ÷ 12)n. Choice C, o = (0.16/12) · n, gives this equation.

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