Which one of these methods is the fairest of calculating interest?
A) Declining balance
B) Adjusted balance
C) Average daily balance excluding purchases
D) Average daily including purchases method
E) Previous balance method

Question

Quizplus · Accepted Answer

The average daily balance including purchases method is considered the fairest because it takes into account the balance on each day of the billing cycle, including any new purchases, providing a more accurate reflection of the actual balance over time.

Which One of These Methods Is the Fairest of Calculating