Patrick has a credit card with an APR of 15.40% and a billing cycle of 30 days. The following table shows Patrick's credit card transactions in the month of August.
Date
8/1
8/6
8/9
8/17
8/20
8/22
Amount ($) Transaction
1,466.22 Beginning balance
28.48 Purchase
150.00 Payment
115.75 Payment
40.00 Purchase
31.761 Purchase
How much greater will Patrick's August finance charge be if his credit card company computos finance charges using
the previous balance method than if it computes finance charges using the adjusted balance method?
a $2.44
b. $3.41
C. $2.13
d. $4.69