5. Judy isn't sure whether a credit card using the average daily balance method, a


credit card using the previous balance method, or a credit card using the


adjusted balance method is right for her. Regardless of the method used, Judy's


APR will be 26%. Her last 30-day billing cycle was typical for her, so she decided


to calculate the amount of interest charged by each method to compare them.


The opening balance of her last 30-day billing cycle was $930, and it remained


that amount for the first 10 days of the billing cycle. She then made a purchase


for $550, so her balance jumped to $1480, and it remained that amount for the


next 10 days. Judy then made a payment of $790, so her balance for the last 10


days of the billing cycle was $690.