The "Adjusted Balance" method of computing finance charges results in the lowest finance charge.

Question

Quizplus · Accepted Answer

The "Adjusted Balance" method typically results in the lowest finance charge for the consumer because it subtracts payments made during the billing period from the balance at the end of the previous period, ignoring new purchases. This often leads to a lower balance on which the finance charge is calculated.

The "Adjusted Balance" Method of Computing Finance Charges Results in the Lowest