Abby has a credit card which uses the adjusted balance method to compute finance charges. her card has an apr of 11.83%, and she is on a 30-day billing cycle. the table below shows her transactions in the month of january. date amount ($) transaction 1/1 722.10 beginning balance 1/6 18.12 purchase 1/7 65.00 payment 1/14 18.00 purchase 1/20 44.79 purchase 1/23 34.25 purchase 1/27 40.00 payment what will abby’s january finance charge be? a. $6.08 b. $7.12 c. $7.22 d. $8.25

Adjusted balance method: Based on finance charges on the amount(s) owed at the end of the current billing cycle after posted credits and payments.

The total amount on which interest will be applied using the adjusted balance method is;

[tex]=722.10 + 18.12-65.00 +18.00 + 44.79+ 34.25 - 40.00\\\\= 732.26[/tex]

Abby’s January finance charge will be;

[tex]= 732.26 \times 11.83 \times \dfrac{30}{360}\times \dfrac{1}{100}\\\\= 7.22[/tex]

Hence, Abby's January finance charge is $7.22.

To get more about the adjusted balance method please refer to the link,

brainly.com/question/14351468

jp912south jp912south · Answer 2 · 2022-05-02T15:30:54+02:00

jp912south jp912south

02-05-2022

Answer:

C

Step-by-step explanation:

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