If creditors add finance charges after subtracting payments made during the billing period, this is called the: A. APR method. B. average daily balance method. C. previous balance method. D. adjusted balance method.

Question

Maci Haney

Business

25 May, 02:48

If creditors add finance charges after subtracting payments made during the billing period, this is called the: A. APR method. B. average daily balance method. C. previous balance method. D. adjusted balance method.

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Answers (2)

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Susan Jones · Answer 1

The answer is "D. adjusted balance method."

The adjusted balance method is the most well-known technique utilized by banks and back organizations to figure the premium wage or fund accuses related of a ledger or charge card account, separately. Basically, the bank or back organization holds up until the finish of the charging time frame, totals all changes made to the record amid the period, and after that figures any premium or fund charges dependent on this closure balance.

Hence, the adjusted balance method tends to result in lower intrigue and expense charges to clients for Visa accounts. This can be a key choice factor for a man or business exploring which charge card to receive.

PbJ · Answer 2

The correct answer is D. Adjusted balance method.

Adjusted balance method in termed as the method which is being used by finance companies and banks to calculate for finance charges or interest income. which is known to be associated with credit card account or bank account.

The finance waits to aggregate all the adjustments and also calculates finance charges or interest rates by the end of billing period which will depend with the ending balance.