Question 10 • FowU - Financial Math - B
With the adjusted balance method, subtract payments from the beginning balance and exclude purchases made during the billing cycle. Abby’s adjusted balance is $722.10 − $65.00 − $40.00 = $617.10. The monthly rate is 11.83% ÷ 12, so the finance charge is $617.10 × (0.1183 ÷ 12) ≈ $6.08. The correct choice is $6.08.
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