Finance Charges on credit cards

The rate of interest and estimated dollar amount of finance charges The rate of interest and method used to compute finance charges The interest rate on cash advances is generally the rate on purchases. The most common method that banks and retail credit card issuers use to compute finance charges is the average daily balance (ADB) method. You expect to actively use your card. Which variation of the ADB method will be least expensive for you? ADB excluding new purchases ADB including new purchases It doesn't matter Consider the following case: On November 1, Yvette's credit card has a balance of \$7,876.75. According to the terms of the card's lending agreement, an interest rate of 1896 per year is assessed and the monthly finance charges are calculated using the Average Dally Balance (ADB) including purchases method. During the month, Yvette 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: During the month, Yvette 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: Use the following table to help Yvette estimate her monthly interest charge for November. One way by which Yvette can reduce her finance charges, everything else remaining constant, is to: Request a lower interest rate on her credit card. Make smaller payments. Make more, even more expensive purchases