Patrick’s August finance charge will be $0.6717 more if it is calculated using the previous balance method.
Previous balance method: Interest charges are based on the amount owed at the beginning of the previous month's billing cycle.
Adjusted balance method: Based on finance charges on the amount(s) owed at the end of the current billing cycle after credits and payments have been posted.
The total amount on which interest will be applied using the previous balance method is;
[tex]= 1,466.22+28.48+40.00+31.76\\\\ = 1566.46[/tex]
So, interest levied on this is;
[tex]= 1566.46 \times 15.40 \times \dfrac{30}{360} \times \dfrac{1}{100}\\\\=20.10[/tex]
Now, the total amount on which interest will be applied using the adjusted balance method is;
[tex]= 1566.46-150.00-115.75\\\\=1300.71[/tex]
So, interest levied on this is;
[tex]= 1300.71 \times 15.40 \times \dfrac{30}{360} \times \dfrac{1}{100}\\\\=16.69[/tex]
The difference between charges by previous balance method and adjusted balance method is;
= 20.10 - 16.69 = 3.41
Hence, Patrick’s August finance charge will be $0.6717 more if it is calculated using the previous balance method.
To get more about the previous and the adjusted balance method please refer to the link,
brainly.com/question/14351468
