Payment for subscriptions is billed one month in advance. First month's payments are pro-rated for the amount due up until the 15th of the month plus the next month's bill amount. All monthly payments are due by the 15th of each month. Payments received after the 20th of the month will result in a late fee of $20.00. The late fee may be waived one time per year. A customer calls and has questions about the bill for their first month's subscription. They want to know why the monthly rate is $45.00, but the bill is for $60.00. What is the most likely reason for the bill being this amount?

A. The customer owes a late fee in addition to the subscription amount.

B. There was a mistake and the customer was over-charged.

C. The subscription began about 10 days before the 15th of the month.

D. The customer's account was upgraded to the next subscription level.

Respuesta :

C. The subscription began about 10 days before the 15th of the month. so you pay the next mounth of the 15


The subscription began about 10 days before the 15th of the month, so the payment would be made on the 15th of the next month.

It is given that the first month is pro- rated when the amount gets due till 15th day of next month along with payment of next month. Therefore, the customer would prefer to start their first subscription that is 10 days prior to the 15th of the first month.

The customers would be charged with the daily rate for each initial 10 days. and will result in $15.

Here, the daily rate can be calculated as follows:

[tex]\frac{45}{30} \\= $1.5[/tex]

Hence, $45 is divided by 30 days as $45 is the given rate for the month, which would give $1.5 as a subscription rate daily for customers.  

Learn more about subscription payment here:

https://brainly.com/question/17143109