The opening balance of one of the 31-day billing cycles for lorenzo's credit card was $4100, but after 15 days lorenzo made a payment of $2300 to decrease his balance, and it stayed the same for the remainder of the billing cycle. if his credit card's apr is 24%, how much more in interest would he pay for the billing cycle with the previous balance method than with the adjusted balance method?
a.$120.26
b.$83.57
c.$36.69
d.$46.88

D.$46.88

Step-by-step explanation:

adjusted balance method

The interest under the adjusted balnace method are calcualte aftert all the transactions for the month are posted.

beginning balance less payment equal ending balance

4,100 - 2,300 = 1,800

now we use that value to calcualte the interest:

principal x rate x time = interest

1,800 x 0.24 x 31/365 = 36.69

interest with 31-days billing cycle: we do not consider the payment until the next billying cycle

4,100 x 0.24 x 31/365 = 83.57

difference: 83.57 - 36.69 = 46.88

As calculated it would pay $46.88 more with this method.

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step-by-step explanation: