which method of calculating finance charge results in the lowest finance charge?\na. average daily…
which method of calculating finance charge results in the lowest finance charge?\na. average daily balance\nb. previous balance\nc. ending balance\nd. adjusted balance\nplease select the best answer from the choices provided\no a\no b\no c\no d
Answer
Brief Explanations:
The adjusted - balance method calculates finance charges based on the balance at the end of the previous billing cycle after credits and payments are subtracted. It doesn't include new purchases made during the current billing cycle in the balance on which the finance charge is calculated, often resulting in the lowest finance charge compared to other methods like average daily balance, previous balance, and ending balance methods.
Answer:
D. adjusted balance