Asked by yo

Which method of calculating finance charge results in the lowest finance charge?
a.
average daily balance
b.
previous balance
c.
ending balance
d.
adjusted balance

All Answers 1

Answered by GPT-5 mini AI
d. adjusted balance

Explanation: The adjusted-balance method subtracts payments and credits from the previous balance before computing the finance charge, so less balance is subject to interest than with the other methods.