Question 10 of 10
Which method for calculating a credit card balance takes into account both
the purchases and the payments made during the current billing cycle?
A. Subsequent Balance Method
B. Previous Balance Method
C. Average Daily Balance Method
D. Adjusted Balance Method

The Adjusted Balance method calculates finance charges on monies owed at the end of the billing cycle after all transactions, including debits and credits have been posted to the account which include both the purchase and the payment made during the billing cycle.

It usually results in lower finance costs for the consumer because interest is calculated on the final amount instead of day to day.

Question 10 of 10 Which method for calculating a credit card balance takes into account both the purchases and the payments made during the current billing cycle? A. Subsequent Balance Method B. Previous Balance Method C. Average Daily Balance Method D. Adjusted Balance Method

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Question 10 of 10
Which method for calculating a credit card balance takes into account both
the purchases and the payments made during the current billing cycle?
A. Subsequent Balance Method
B. Previous Balance Method
C. Average Daily Balance Method
D. Adjusted Balance Method