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.