To minimize finance charges calculated by the daily balance method, when in the billing cycle is it best to make purchases and payments?

With the daily balance method, finance charges depend on the balance owed each day. Making payments early reduces the balance for more days, while making purchases late keeps them from adding to the balance for as many days. Therefore, the best choice is “Payments should be made early in the billing cycle, and purchases should be made late in the billing cycle.”

AI-written and checked against the verified answer.