If creditors add finance charges after subtracting payments made during the billing period,this is called the:
A)APR method.
B)discount method.
C)previous balance method.
D)adjusted balance methoD.
E)average daily balance method.

Question

Quizplus · Accepted Answer

The adjusted balance method is the most commonly used method for calculating finance charges. This method takes into account the payments made during the billing period and subtracts them from the previous balance before adding finance charges. This results in a lower finance charge than the previous balance method, which charges interest on the entire balance from the previous period. The other methods listed are less commonly used or do not take into account payments made during the billing period.

If Creditors Add Finance Charges After Subtracting Payments Made During