Paying the maximum balance due each month Borrowing money to pay old debts Using savings to pay for major purchases
Receiving notice of prompt payment from creditors Occasionally working overtime and moonlighting
Question 15. 15.( TCO 3) Allison Smith starts the month with a balance of $ 1,100 on her credit card. On the 10th day of the month, she purchases $ 200 in clothes with her credit card. On the 15th day of the month, she makes a payment on her credit card of $ 500. The average daily balance for the month including the new purchase is $ 883. The average daily balance for the month excluding the new purchase is $ 750. Allison ' s interest rate is 1.5 % for the month. Allison ' s bank calculates the finance charge on the credit card by using the adjusted balance method. What would Allison ' s finance charges be for the month?
$ 7.50
$ 9.00 $ 11.25 $ 13.25 $ 16.50
Question 16. 16.( TCO 3) Jerry Dean starts the month with a balance of $ 1,500 on his credit card. On the 10th day of the month, he purchases $ 200 in clothes with his credit card. On the 15th day of the