Yvonne's credit card has an APR of 17.79% and a 30-day billing cycle. The following table details her credit card transactions in the month of June.
Date
Amount ($)
Transaction
6/1
925.43
Beginning balance
6/7
62.74
Payment
6/11
28.27
Purchase
6/21
50.00
Purchase
Between the previous balance method and the daily balance method, which method of calculating Yvonne's June finance charge will result in a greater finance charge, and how much greater will it be?
a.
The daily balance method will have a finance charge $0.21 greater than the previous balance method.
b.
The daily balance method will have a finance charge $0.53 greater than the previous balance method.
c.
The previous balance method will have a finance charge $0.45 greater than the daily balance method.
d.
The previous balance method will have a finance charge $0.40 greater th