Question

The opening balance of one of the billing cycles for Jacobs credit card was $484. If he makes a payment during the billing cycle but doesnt make any new purchases, what would be an accurate statement?

Answer 1

I believe the answer is: Jacob will pay less interest with the adjusted balance method and the average daily balance method, but not with the previous balance method

In adjusted balance method and average daily balance method, the basis amount for the interest charge would be changed everytime the balance in jacob's credit card decreased or increased.

When payment is made without any new purchase, the interest rate that jacob have to pay would keep decreasing over time.

Answer 2

Jacob will pay less interest with the adjusted balance method and the average daily balance method, but not with the previous balance method