10. Finance charges on credit cards Date Purchases Finance Charges on Credit Cards Even before you use a new credit card, what information is the institution that issued your card required by law to disclose? ? November 5 $1,835.95 November 15 55.6 November 19 63.1 November 27 447.77 The method used to compute finance charges and estimated dollar amount of finance charges The rate of interest and method used to compute finance charges The rate of interest and estimated dollar amount of finance charges The interest rate on cash advances is generally the rate on purchases. Additional Information Monthly interest rate 1.50% Beginning card balance $7,876.75 Days in the month 30 The most common method that banks and reta: the same as uers use to compute finance charges is the average daily balance (ADB) method. You expect to actively use your card. Which variatio lower than ethod will be least expensive for you? O ADB excluding new purchases higher than O ADB including new purchases O It doesn't matter Use the following table to help Becky estimate her monthly interest charge for November. Consider the following case: : Calculated Value On November 1, Becky's credit card has a balance of $7,876.75. According to the terms of the card's lending agreement, an interest rate of 18% per $ year is assessed and the monthly finance charges are calculated using the Average Daily Balance (ADB) including purchases method. Number of Days Daily Balance 4 $7,876.75 10 During the month, Becky expects to make the purchases listed below and will make a payment of $590.76 on November 25, and has collected the following additional information: Dates 11/2 - 11/5 11/6 - 11/15 11/16 - 11/19 11/20 - 11/25 11/26 - 11/27 11/28 - 11/1 4 6 2 One way by which Becky can increase her finance charges, everything else remaining constant, is to: 4 $ Total 30 Make fewer, less expensive purchases. Buy a larger number of more expensive items using your card. Make larger or more frequent payments. One way by which Becky can increase her finance charges, everything else remaining constant, is to: Average Daily Balance With Purchases Finance Charge $ One way by which Becky can increase her finance charges, everything else remaining constant, is to: Make fewer, less expensive purchases. Buy a larger number of more expensive items using your card. Make larger or more frequent payments. Make fewer, less expensive purchases. Buy a larger number of more expensive items using your card. Make larger or more frequent payments