Charity Morales

Mathematics

27 August, 11:05

Dennis has a credit card with an APR of 10.14% and a billing cycle of 30 days. The following table shows his transactions with that credit card in the month of November.

Date

Amount ($)

Transaction

11/1

517.87

Beginning balance

11/9

31.63

Purchase

11/23

64.10

Purchase

11/26

65.75

Payment

If the finance charge for November is $3.82, which method of calculating the finance charge does Dennis's credit card company use?

a.

adjusted balance method

b.

previous balance method

c.

daily balance method

d.

there is not enough information to determine which method was used