The ________ method charges interest based on the balance at the beginning of the new billing period.
A) new cycle
B) adjusted balance
C) average daily balance
D) previous balance

Question

Quizplus · Accepted Answer

The previous balance method charges interest based on the balance at the beginning of the new billing period, not taking into account any new charges or payments made during the billing cycle.

The ________ Method Charges Interest Based on the Balance at the Beginning