Consider the following case:

On March $1,$ Ginny$$s credit card has a balance of $$1,125\mathrm{.}25.$ According to the terms of the card$$s lending agreement, an interest rate of $12\%$ per year is assessed and the monthly finance charges are calculated using the Average Daily Balance $($ADB$)$ including purchases method.

During the month, Ginny expects to make the purchases listed below and will make a payment of $$84\mathrm{.}39$ on March $23,$ and has collected the following additional information:

Date

Purchases

March $6$ $$391\mathrm{.}25$

March $1243\mathrm{.}8$

March $2046\mathrm{.}9$

March $271,160\mathrm{.}16$

Additional Information

Monthly interest rate $1\mathrm{.}00\%$

Beginning card balance $$1,125\mathrm{.}25$

Days in the month $31$

Use the following table to help Ginny estimate her monthly interest charge for March.

Dates

Number of Days

Daily Balance

Calculated Value

$3/2-3/65$ $$1,125\mathrm{.}25$

$3/7-3/126$

$3/13-3/208$

$3/21-3/233$

$3/24-3/274$

$3/28-3/15$

Total $31$

Average Daily Balance With Purchases

Finance Charge

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

Make fewer, less expensive purchases.

Make larger or more frequent payments.

Buy a larger number of more expensive items using your card.