Estimate the answer by picking the best choice without calculating. The method of calculation most advantageous to the credit card company is the
A) previous balance method
B) adjusted balance method
C) average daily balance method
__________ (Enter A, B, or C )

Question

Quizplus · Accepted Answer

The previous balance method tends to be most advantageous to the credit card company because it calculates interest based on the balance at the beginning of the billing cycle, not taking into account any payments made during the cycle. This can result in higher interest charges compared to methods that consider payments or average daily balances.

Estimate the Answer by Picking the Best Choice Without Calculating