On November 1, Erics credit card has a balance of $4,501.00. According to the terms of the cards 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.

During the month, Eric expects to make the purchases listed below and will make a payment of $337.58 on November 25, and has collected the following additional information:

Date	Purchases
November 5	$1,835.95
November 15	55.6
November 19	63.1
November 27	447.77

Additional Information

Monthly interest rate	1.50%
Beginning card balance	$4,501.00
Days in the month	30

Use the following table to help Eric estimate his monthly interest charge for November.

Dates	Number of Days	Daily Balance	Calculated Value
11/2 - 11/5	4	$4,501.00
11/6 - 11/15	10
11/16 - 11/19	4
11/20 - 11/25	6
11/26 - 11/27	2
11/28 - 11/1	4
Total	30
Average Daily Balance With Purchases
Finance Charge

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

Request a lower interest rate on his credit card.

Make more, even more expensive purchases.

Make smaller payments.