Estimate the answer by picking the best choice without calculating. The method of calculation most advantageous to the consumer is the __________.
A) average daily balance method
B) adjusted balance method
C) previous balance method

Question

Quizplus · Accepted Answer

The adjusted balance method is the most advantageous to the consumer because it takes into account payments made during the billing cycle, which reduces the balance on which interest is charged. The average daily balance method and previous balance method do not take payments into account, which could result in the consumer paying more interest.

Estimate the Answer by Picking the Best Choice Without Calculating