To solve for the finance charges in month 2, we need to follow a step-by-step process utilizing the given information about Mindy's credit card.
1. Identify the relevant values:
- Previous balance at the end of month 1: \[tex]$45.00
- Annual Percentage Rate (APR): 15%
- Monthly interest rate: Since interest compounds monthly, the monthly interest rate = \( \frac{\text{APR}}{12} \).
So, the monthly interest rate will be: \( 0.15 \div 12 = 0.0125 \).
2. Calculate the finance charges for month 2:
We use the previous balance and the monthly interest rate to calculate the finance charges.
Finance charges = Previous balance \(\times\) Monthly interest rate
Substituting the values:
Finance charges for month 2 \(= 45.00 \times 0.0125 \).
3. Perform the multiplication:
\( 45.00 \times 0.0125 = 0.5625 \)
4. Round to two decimal places:
Since we round to 2 decimal places, 0.5625 rounds to 0.56.
Thus, the finance charges for month 2 is \( \$[/tex]0.56 \).
Therefore, the correct answer is:
- [tex]\(\boxed{A. \$0}\)[/tex]
