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Mathematics, 02.01.2022 01:50 guapotaco8102
5. Judy isn't sure whether a credit card using the average daily balance method, a credit card using
the previous balance method, or a credit card using the adjusted balance method is right for her.
Regardless of the method used, Judy's APR will be 26%. Her last 30-day billing cycle was typical for
her, so she decided to calculate the amount of interest charged by each method to compare them.
The opening balance of her last 30-day billing cycle was $930, and it remained that amount for the
first 10 days of the billing cycle. She then made a purchase for $550, so her balance jumped to
$1480, and it remained that amount for the next 10 days. Judy then made a payment of $790, so her
balance for the last 10 days of the billing cycle was $690.
Help Judy decide which method is best for her based on her last 30-day billing cycle. (4 points: Part 1
- 1 point; Part II - 1 point; Part III - 1 point; Part IV-1 point)
Part I: What is Judy's average balance for her billing cycle?
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5. Judy isn't sure whether a credit card using the average daily balance method, a credit card using...
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