Question

Jessica’s credit card is on a 30-day billing cycle, and it computes finance charges using the adjusted balance method. the following table details jessica’s use of her credit card in the month of october. date amount ($) transaction 10/1 1,240.55 beginning balance 10/2 36.43 purchase 10/10 75.00 payment 10/13 131.79 payment 10/20 41.52 purchase 10/22 25.00 purchase what is jessica’s adjusted balance for october? a. $1,136.71 b. $1,033.76 c. $1,140.55 d. $1,240.55

Answer 1

Jessica’s adjusted balance for October with 3 purchases and 2 payments comes to be $1136.71.

What is the adjusted balance method?

In this method payment done by the borrower in between the month is adjusted in the final balance on which interest is to be levied.

Details of transactions for the month of October are given as:

Date     Transaction/amount            Details

10/1             $1,240.55                   beginning balance

10/2            $36.43                            purchase

10/10           $75.00                            payment

10/13          $131.79                             payment

10/20          $41.52                             purchase

10/22          $25.00                            purchase

Total balance at the end of October

= 1240.55+36.43-75-131.79+41.52-25

Total balance at the end of October =$1136.71

Therefore, Jessica’s adjusted balance for October is $1136.71.

To get more about the adjusted balance method visit:

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