Question

Annette has a credit card that uses the previous balance method. The

opening balance of one of her 30-day billing cycles was $2990, but that was
her balance for only the first 7 days of the billing cycle, because she then paid
off her entire balance and didn't make any new purchases. If her credit card's
APR is 31%, which of these expressions could be used to calculate the
amount Annette was charged in interest for the billing cycle?

Answer 1

D.

Explanation:

Answer 2

Option D is correct.

Explanation:

Previous Balance Method uses the "previous" balance, that is, the balance from the month before.

Here, it is given that the opening balance of one of her 30-day billing cycles was $2990. This means this was previous month amount or previous balance.

So, Annette will be charged the interest on $2990.

Hence, option D is correct.