Question

jessicas credit card is on a 30-day billing cycle, and it computes finance charges using the adjusted balance method. the following table details jessicas use of her credit card in the month of october.

date	amount ($)	transaction
10/2	36.43	purchase
10/10	75.00	payment
10/13	131.79	payment
10/20	41.52	purchase
10/22	25.00	purchase

what is jessicas adjusted balance for october?
a. $1,136.71
b. $1,033.76
c. $1,140.55
d. $1,240.55

Explanation:

Step1: Identify transactions

Beginning balance: $1,240.55. Purchases: +36.43, +41.52, +25.00. Payments: -75.00, -131.79.

Step2: Calculate total purchases

Sum purchases: \( 36.43 + 41.52 + 25.00 = 102.95 \)

Step3: Calculate total payments

Sum payments: \( 75.00 + 131.79 = 206.79 \)

Step4: Adjust beginning balance

Adjusted balance = Beginning balance + Total purchases - Total payments.
\( 1240.55 + 102.95 - 206.79 = 1136.71 \)

Answer:

a. $1,136.71