Adam’s credit card calculates finance charges using the adjusted balance method and a 30-day billing cycle. The table below shows his use of that credit card over three months.DateAmount ($)Transaction4/1626.45Beginning balance4/1037.41Purchase4/1244.50Purchase5/365.50Payment5/1624.89Purchase5/20104.77Payment6/623.60Payment6/1015.00Purchase6/1451.85PurchaseIf Adam’s credit card has an APR of 14.63%, what is Adam’s balance at the end of June?

The monthly rate is 14.63% ÷ 12 ≈ 1.2192%. With the adjusted balance method, subtract payments before calculating each month’s finance charge, then add purchases. April ends at about $715.99; May’s adjusted balance is $715.99 − $65.50 − $104.77 = $545.72, so May ends at about $577.26 after its finance charge and $24.89 purchase. June ends at about $577.26 − $23.60 + $66.85 + ($553.66 × 1.2192%) = $627.27, choice C.

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