Consider the following case:

On June 1, Amys credit card has a balance of $2,250.50. According to the terms of the cards lending agreement, an interest rate of 20% per year is assessed and the monthly finance charges are calculated using the Average Daily Balance (ADB) including purchases method.

During the month, Amy expects to make the purchases listed below and will make a payment of $168.79 on June 24, and has collected the following additional information:

Date	Purchases
June 8	$102.39
June 10	1,722.13
June 22	1,184.19
June 28	15.13

Additional Information

Monthly interest rate	1.67%
Beginning card balance	$2,250.50
Days in the month	30

Use the following table to help Amy estimate her monthly interest charge for June.

Dates	Number of Days	Daily Balance	Calculated Value
6/2 - 6/8	7	$2,250.50
6/9 - 6/10	2
6/11 - 6/22	12
6/23 - 6/24	2
6/25 - 6/28	4
6/29 - 6/1	3
Total	30
Average Daily Balance With Purchases
Finance Charge

One way by which Amy can reduce her finance charges, everything else remaining constant, is to:

Make more, even more expensive purchases.

Request a lower interest rate on her credit card.

Make smaller payments.