Adam's credit card calculates finance charges using the adjusted balance method and a 30-day billing cycle. The table below shows his use of that credit card over three months.

\begin{tabular}{|c|r|c|}
\hline
Date & Amount (\[tex]$) & Transaction \\
\hline
$[/tex]4 / 1[tex]$ & 626.45 & Beginning balance \\
\hline
$[/tex]4 / 10[tex]$ & 37.41 & Purchase \\
\hline
$[/tex]4 / 12[tex]$ & 44.50 & Purchase \\
\hline
$[/tex]5 / 3[tex]$ & 65.50 & Payment \\
\hline
$[/tex]5 / 16[tex]$ & 24.89 & Purchase \\
\hline
$[/tex]5 / 20[tex]$ & 104.77 & Payment \\
\hline
$[/tex]6 / 6[tex]$ & 23.60 & Payment \\
\hline
$[/tex]6 / 10[tex]$ & 15.00 & Purchase \\
\hline
$[/tex]6 / 14[tex]$ & 51.85 & Purchase \\
\hline
\end{tabular}

If Adam's credit card has an APR of $[/tex]14.63 \%[tex]$, what is Adam's balance at the end of June?

a. $[/tex]\[tex]$ 629.42$[/tex]

b. [tex]$\$[/tex] 629.66$



Answer :

To determine Adam's balance at the end of June, we must first consider his transactions and their respective effects on the account balance. Let's walk through each of the transactions step by step and compute the balance at each stage.

1. Starting Balance (April 1st):
- Balance: \[tex]$626.45 2. April 10 - Purchase: - Amount: \$[/tex]37.41 (This will be added to the balance)
- New Balance: \[tex]$626.45 + \$[/tex]37.41 = \[tex]$663.86 3. April 12 - Purchase: - Amount: \$[/tex]44.50 (This will be added to the balance)
- New Balance: \[tex]$663.86 + \$[/tex]44.50 = \[tex]$708.36 4. May 3 - Payment: - Amount: \$[/tex]65.50 (This will be subtracted from the balance)
- New Balance: \[tex]$708.36 - \$[/tex]65.50 = \[tex]$642.86 5. May 16 - Purchase: - Amount: \$[/tex]24.89 (This will be added to the balance)
- New Balance: \[tex]$642.86 + \$[/tex]24.89 = \[tex]$667.75 6. May 20 - Payment: - Amount: \$[/tex]104.77 (This will be subtracted from the balance)
- New Balance: \[tex]$667.75 - \$[/tex]104.77 = \[tex]$562.98 7. June 6 - Payment: - Amount: \$[/tex]23.60 (This will be subtracted from the balance)
- New Balance: \[tex]$562.98 - \$[/tex]23.60 = \[tex]$539.38 8. June 10 - Purchase: - Amount: \$[/tex]15.00 (This will be added to the balance)
- New Balance: \[tex]$539.38 + \$[/tex]15.00 = \[tex]$554.38 9. June 14 - Purchase: - Amount: \$[/tex]51.85 (This will be added to the balance)
- New Balance: \[tex]$554.38 + \$[/tex]51.85 = \[tex]$606.23 Given these transactions, Adam’s balance at the end of June is \$[/tex]606.23.

Therefore, the correct answer is not listed in the provided options, but based on the transactions, the calculated balance is \$606.23.