It doesn't matter ADB excluding new purchases ADB including new purchases Consider the following case: On March 1st, Emma's credit card has a balance of $10,127.25. 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, Emma expects to make the purchases listed below and will make a payment of $759.54 on March 23rd, and has collected the following additional information: Date March 06 March 12 March 20 Purchases $391.25 43.80 46.90 1,160.16 Additional Information Monthly interest rate 1.00% Beginning card balance $10,127.25 Days in the month 31 March 27 Use the following table to help Emma estimate her monthly interest charge for March. Assume the billing cycle is from 3/02 - 4/01. Number of Days Daily Balance Calculated Value Dates 3/ 3/ - 31 J-31 -3/ -3/ 1-31 31 1-4/ Total Average Daily Balance With Purchases Finance Charge One way by which Emma can reduce her finance charges, everything else remaining constant, is to: O Make smaller payments O Request a lower interest rate on her credit card O Make more, even more expensive purchases