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Yvonne's credit card has an APR of 17.79% and a 30-day billing cycle. The following table details her credit card transactions in the month of
Yvonne's credit card has an APR of 17.79% and a 30-day billing cycle. The following table details her credit card transactions in the month of June.
Date | Amount ($) | Transaction |
6/1 | 925.43 | Beginning balance |
6/7 | 62.74 | Payment |
6/11 | 28.27 | Purchase |
6/21 | 50.00 | Purchase |
Between the previous balance method and the daily balance method, which method of calculating Yvonne's June finance charge will result in a greater finance charge, and how much greater will it be?
a. | The daily balance method will have a finance charge $0.21 greater than the previous balance method. |
b. | The daily balance method will have a finance charge $0.53 greater than the previous balance method. |
c. | The previous balance method will have a finance charge $0.45 greater than the daily balance method. |
d. | The previous balance method will have a finance charge $0.40 greater than the daily balance method. |
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