Gregory has a credit card with a 30-day billing cycle and an APR of 11.95%. The following table shows Gregory’s credit card transactions for the month of April.


Date

Amount ($)

Transaction

4/1

622.82

Beginning balance

4/4

45.45

Payment

4/10

78.91

Purchase

4/25

16.36

Purchase


Between the adjusted balance method and the daily balance method, which method of computing Gregory’s April finance charge will result in a greater finance charge, and how much greater will it be?

a.

The daily balance method will have a finance charge $0.09 greater than the adjusted balance method.

b.

The daily balance method will have a finance charge $0.54 greater than the adjusted balance method.

c.

The adjusted balance method will have a finance charge $1.40 greater than the daily balance method.

d.

The adjusted balance method will have a finance charge $0.86 greater than the daily balance method.