Use of Financial Calculator TI BA II Plus required. If a company uses the adjusted balance method of calculating interest at 1.75 percent monthly, what would be the new balance on your credit card if it had a balance of $650 and you paid $190 off before the adjusted billing period?
A)$471.38
B)$468.05
C)$466.50
D)$460.00

Question

Quizplus · Accepted Answer

The adjusted balance method calculates interest on the balance after payments are made. First, subtract the payment from the balance: $650 - $190 = $460. Then, calculate the interest on the adjusted balance: $460 * 1.75% = $8.05. Add the interest to the adjusted balance: $460 + $8.05 = $468.05.

Use of Financial Calculator TI BA II Plus Required