Jessica’s credit card is on a 30-day billing cycle, and it computes finance charges using the adjusted balance method. the following table details jessica’s use of her credit card in the month of october. date amount ($) transaction 10/1 1,240.55 beginning balance 10/2 36.43 purchase 10/10 75.00 payment 10/13 131.79 payment 10/20 41.52 purchase 10/22 25.00 purchase what is jessica’s adjusted balance for october? a. $1,136.71 b. $1,033.76 c. $1,140.55 d. $1,240.55

The correct option is b.

Step-by-step explanation:

The following table details Jessica’s use of her credit card in the month of October.

Date                  Amount ($)            Transaction

10/1                    1,240.55               Beginning balance

10/2                       36.43                Purchase

10/10                      75.00                Payment

10/13                      131.79                Payment

10/20                     41.52                 Purchase

10/22                     25.00                Purchase

Purchase will not effect the balance of credit card. Payments will reduce the balance of credit card.

Amount of payments are 75.00 and 131.79.

Therefore the adjusted balance of Jessica’s credit card in the month of October is 1033.76. Option b is correct.

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